A Brown Company has 2nd tranche of preferred shares sale approved by SEC
A Brown Company [BRN 0.64, down 3.0%; 127% avgVol] [link] notified the exchange that the SEC approved its plan to sell a second tranche of preferred shares under its shelf registration. BRN plans to sell 15 million preferred shares at P100/share to raise P1.5 billion. The prospectus called for the tranche to be split into two series (Series B and Series C) and listed separately as BRNPB and BRNPC. The first tranche of preferred shares sold under this shelf registration was sold to raise P1.5 billion and was listed in November 2021 under the ticker BRNP. BRN intends to use up to P1 billion of the proceeds to fund the “development of pipeline projects” in its real estate portfolio, and to spend approximately P300 million on buying land in Mindanao and Luzon to add to its landbank.
MB bottom-line: A shelf registration is valid for three years, so the clock is ticking on the company’s ability to sell the remaining 20 million shares of unused quota before the shelf registration expires later this year. The timeline from the preliminary prospectus assumed a January 12 listing date based off of having received SEC approval on December 7, so now that SEC approval has been given on January 23, I’d look for the BRNPB and BRNPC shares to list in the last few days of February. BRN still has to obtain approval from the PSE, and then price the offerings (provide the dividend rate for each series) before it conducts the offer.
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