CENTURY Properties Group, Inc. (CPG) is seeking approval from its shareholders to convert three billion common shares into preferred shares with a par value of 53 centavos each, for future fundraising activities.
In a disclosure to the stock exchange Friday, the Antonio-led property developer said its board of directors has approved the reclassification of the preferred shares.
“The company’s reclassification of the three billion common shares to preferred shares is a capital raising activity which the company views as more beneficial to the Company’s interests as there will be no increase in the Company’s debt-to-equity ratio,” CPG said.
The board also amended its previous decision to increase its authorized capital stock to P10.95 billion as part of the issuance of the preferred shares. Its authorized capital stock will now remain at P9.54 billion.
Once the company secures shareholder approval, the amendments will be filed with the Securities and Exchange Commission (SEC).
The company’s board will also determine the terms of the preferred shares once the transaction gets the SEC’s nod.
Preferred shares typically have no voting rights, but are prioritized in the distribution of cash dividends.
CPG has committed to spend P30 billion in capital expenditures over the next three years, as it looks to construct more projects across the country. This includes the expansion of its leasing assets and launch of more residential communities in Pampanga, Quezon City, and Makati.
It targets to book P2 billion in leasing revenues by next year on the back of its aggressive expansion.
Aside from its office and in-city residential projects, the company is also expanding its affordable housing project under the Phirst Park Homes brand.
CPG’s net income rose 63% to P704.56 million in the first half of 2019, on the back of a 24% uptick in gross revenues to P5.45 billion.
Shares in CPG ended flat at 58 centavos each at the stock exchange on Friday. — Arra B. Francia