Century Properties P4-B prefs sale approved by PSE

Century Properties [CPG 0.28, up 1.9%] [link] had its follow-on offering of preferred shares approved by the PSE. The shares will be sold for P100/share, feature an initial dividend rate of 7.5432% per year, and be listed on the PSE on 22 February 2024 under the ticker symbol, CPGPB. CPG is selling 20 million CPGPB shares as part of its firm offer, and an additional 20 million CPGPB shares as part of an overallotment option. CPG will raise ?4 billion assuming full exercise of the overallotment option. China Bank Capital [CHIB 31.85, up 1.1%] is doing it all for this equity raise as the sole issue manager, underwriter, and bookrunner. 

MB bottom-line: No word yet on why CPG downsized the offer by 20%. The SEC approved the deal as it was contained in the preliminary prospectus, which was a sale worth ?5 billion comprising 30 million firm shares and a 20 million oversubscription. Cutting the firm offer by a third to me says that CPG is perhaps not as confident in the market’s thirst for this kind of product at this kind of yield. I wonder if the Villar Group’s abandonment of its 8-something percent yield bond sale for lack of interest was taken by the Antonio Family as a warning shot across CPG’s bow to manage expectations down a bit. 

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