Image by thelouie via FlickrMANILA, Philippines – As its market price continued to rise amid a bull run, SM Development Corporation has decided to set its stock rights offer price at P6.38 per share, well above its earlier price range, for a higher total offering size of P11.69 billion.
In a disclosure to the Philippine Stock Exchange, SMDC said the offer price still represents a discount of 18.19 percent to the 15-day volume-weighted average price of SMDC shares from the trading days covering August 26 to September 17, 2010.
SMDC is offering 1.83 billion shares stockholders at the rate of one rights share for every three common shares held. The offer price range was earlier set between P5.45 and P5.73 per share. Closing price was P9.00 per share yesterday.
The residential property development arm of SM Investments Corporation, SMDC plans to launch its stock rights offering on October 18 to October 22, 2010 for stockholders as of October 6. The shares will be listed at the bourse on November 3, 2010.
Stockholders subscribing to the issue will have to pay for only half of the shares upon subscription while the balance of 50 percent will be paid in full on the sixth month from the listing date although they may opt to pay in full on the third month after listing.
SMDC president Henry Sy Jr. said proceeds from the offer will be used by the company for its land banking and project development expenses.
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