SM Development raises P12-B fresh capital from rights offer
MANILA, Philippines - SM Development Corp. (SMDC), the property arm of the Sy Group, generated P11.7 billion from its second stock rights offering this year.
Proceeds from the rights offer, which was fully subscribed, will be used for land acquisition, project development and construction activities, the company said in a statement.
SMDC listed 1.83 billion common shares from the rights offer held on October 18 to 22.
"The company will receive 50% of the total proceeds from the offer equivalent to P5.8 billion and the other 50% on or before end of May 2011," it said.
SMDC vice chairman and chief executive officer Henry Sy Jr. said the strong market reception to the company's second rights offer was "a clear manifestation of trust and confidence investors and other stakeholders have on the positive prospects of the company."
SMDC raised P5 billion from its first rights offer early this year, and another P10 billion from the issuance of notes in June.