Leading the ceremonial bell ringing were (from left) CPG Independent Director Carlos P. Ejercito; CPG Director Rafael G. Yaptinchay; CPG Managing Director Carlo R. Antonio; CPG President and CEO Marco R. Antonio; PSE Chairman Mr. Jose T. Pardo; PSE President and CEO Ramon S. Monzon; PSE Chief Operating Officer Atty. Roel A. Refran; and CPG Director Ricardo P. Cuerva.
Listed property developer Century Properties Group, Inc. (CPG:PM) marked its follow-on offering of preferred shares with a bell-ringing ceremony today at the Philippine Stock Exchange, successfully raising Php 3 billion for the expansion of its commercial leasing business.
CPG’s largest equity capital markets transaction to date was twice (2.0x) oversubscribed over the Php2 billion base issue size, thereby allowing the company to fully exercise its Php 1 billion oversubscription option.
“We are very happy with the overwhelming market reception to CPG’s first fundraising exercise in the equity capital markets since 2011. This is a strong vote of confidence in the direction that the management has taken to drive growth for the company, supported by concrete results so far delivered through our positive financial performance over the past several quarters,” said CPG President and Chief Executive Officer Marco R. Antonio.
China Bank Capital Corporation was Sole Issue Manager, Lead Underwriter, and Sole Bookrunner of the offering.
“We are very pleased to usher the new year with the first equity listing for 2020. The success of CPG’s preferred shares offering demonstrates the market’s confidence in the company’s strategy of sustaining its impressive growth through a diversified property portfolio,” said China Bank Capital President Ryan Martin L. Tapia.
CPG successfully raised funds early last year through a bond offering to grow the company’s affordable housing business. Commercial leasing and affordable housing are two allied real estate segments that CPG is growing as part of its plans to diversify its real estate portfolio from being primarily focused on high-rise condominium developments and build a stronger firm with well-balanced sources of revenue. Each segment is estimated to contribute at least 30% of CPG’s net income in the next 3 years.
Last month, the Securities and Exchange Commission approved CPG’s application to offer 20 million preferred shares at Php100.00 each with an oversubscription option of up to 10 million preferred shares. The offer period was held on December 16, 2019 to January 3, 2020.
Due to strong demand, the transaction priced at the tight end of pricing guidance of 275 to 325 basis points. The dividend rate is set at 6.7177% per annum and dividend payment dates will be quarterly every January 10, April 10, July 10, and October 10 for a period of 3 years. The stock offering will be listed on the main board of the PSE under the trading symbol, “CPGP.”
As disclosed in its quarterly report, CPG posted for the first 9 months of 2019 an 81% increase in net income to Php 1.2 billion compared to Php661 million in the same period last year, exceeding its full year 2018 net income of Php 1.1 billion. The company’s consolidated revenues rose 35.6% to Php9.8 billion compared to Php7.2 billion in the same period a year ago.