Listed Sta. Lucia Land Inc. (SLI) looks to raise up to P8.12 billion in net proceeds from its follow-on offer of up to 2.7 billion common shares, which will partially fund its capital expenditures program for new and ongoing projects, land acquisition and other activities.

The Securities and Exchange Commission (SEC) on Thursday said it received the registration statement for the follow-on offer, which will be listed and traded on the main board of the Philippine Stock Exchange (PSE) index. The offer has to secure the approval of both the SEC and PSE.

“The offer comprises up to 2,700,000,000 common shares with an overallotment option of up to 300,000,000 common shares at an offer price of P2.26 to P2.80 per offer share,” the corporate regulator said.

“Sta. Lucia Land expects to raise about P5.88549 billion to P8.11779 billion in net proceeds to partially finance its capital expenditures for new and some of its ongoing projects, strategic land banking, and for general corporate purposes,” it added.

According to the prospectus submitted to the SEC, SLI expects to raise around P6.1 billion to P8.4 billion in gross proceeds, or net proceeds of about P5.885 billion to P8.117 billion.

SLI has tapped China Bank Capital Corp. as issue manager, underwriter and bookrunner for the transaction. The offer period will begin on 18 November and end on 29 November in accordance with SLI’s expected timetable. The listing date is expected on 9 December.

The property developer also said it will allocate P820 million of the net proceeds for strategic land banking, and targets to buy land in Calabarzon, Western Visayas, Central Luzon and the Davao Region by the fourth quarter of 2020.

“While the joint venture business model has allowed the company to rapidly expand its geographic reach, strategic land banking will allow it to achieve its goals more efficiently. Acquiring lands will allow the company to effectively reduce its reliance on joint venture partners whose interests may not be always be aligned with the company’s and who may take actions that may adversely affect the company,” SLI’s prospectus read.

In May, the company said it will pour P20 billion in capital expenditures in the next three years to widen its footprint nationwide. About P4 billion of the budget is set for land acquisition, while the majority, or more than P16 billion, will be spent to develop the pipeline of projects situated in key places in and outside of Metro Manila, SLI said then.

SLI’s net earnings in the first half surged 104 percent to P884 million from P433 million in the same period in 2018 as gross sales from real estate revenues climb 98 percent to P2.52 billion.