Property firm to raise P750-M via private placement

Source: The Philippine Builder

Publicly listed EIB Realty Developers Inc. said Wednesday its board has approved a plan to raise P750 million through the issuance of 3.75 billion shares to four local investors.

The company, which is 72-percent owned of Export and Industry Bank Inc., said it would sell the shares to AO Capital Holdings, Vista Holdings Corp., The First Resources Management and Securities Corp. and Elite Holdings Inc. through private placement.

The shares form part of the increase in EIB Realty's authorized capital stock from P246 million, consisting of 1.37 billion common shares at P0.18 par, to P2.95 billion, divided into 16.37 billion shares at the same par value. The increase was approved by small stockholders in a meeting last January 28.

Under the requirements of the Securities and Exchange Commission, a quarter of the increase must be subscribed and 25 percent of the said subscription should be fully paid up.

EIB Realty said the total amount paid up as of Tuesday was P168.78 million.

"The reason for the increase in EIB's authorized capital stock by P2.7 billion consisting of 15 billion common shares...is to ensure that [the company] would have enough capital stock in preparation for the capital infusion from potential investors," it said, adding that the fresh funds would be used to develop its existing properties.

EIB Realty owns properties in Fort Bonifacio in Taguig and Tagaytay. These have been earmarked for commercial and office building developments.