Sta. Lucia defers P8.4-billion offering
Credit to Author: Tyrone Jasper C. Piad| Date: Tue, 29 Oct 2019 17:35:19 +0000
STA. Lucia Land Inc. (SLI) is postponing its P8.4-billion follow-on offering because of “volatile” market conditions.
In a disclosure on Tuesday, the listed property firm said that after talking with China Bank Capital Corp. — the transaction’s issue manager, underwriter and bookrunner — it decided it would be in the “best interest” of stakeholders to put the share sale on hold.
“The decision to defer the FOO (follow-on offering) is primarily due to current market conditions, which has been recently volatile,” SLI said.
The new schedule is yet to be announced.
Originally, the offer period was scheduled on November 19 to 29 and the listing was expected on December 9.
SLI filed in August its prospectus with the Securities and Exchange Commission, composed of 2.7 billion shares with 300 million optional shares. Offer price ranges from P2.26 to P2.80 apiece.
Proceeds are allotted to partially fund capital expenditures for its projects, strategic land banking and general corporate matters.
SLI earlier this month announced that it would be entering into joint ventures to develop properties in Rizal and Davao.
The listed firm was also set to acquire parcels of land in Batangas (450 square meter [sqm]), Zambales (35,588 sqm), Davao (74,490 sqm) and Rizal (917 sqm).
Recently, SLI also opened its P500-million mixed-use development La Alegria Residential Estates at Barangay Rizal, Silay City, Negros Occidental.
The Negros Occidental project is offering 1,101 residential lots with sizes ranging from 150 sqm to 300 sqm and 83 commercial spaces with sizes ranging from 500 sqm to 1,000 sqm.
SLI’s consolidated net income grew more than two-fold to P884 million in the first half from year-earlier P433 million on the back of strong revenue growth.
SLI shares ended flat at P2.65 each on Tuesday.