Asiabest Group gears up for follow-on offering

MANILA, Philippines — Asiabest Group International Inc. (ABG) is gearing up for a major fundraising initiative following a significant hike in its authorized capital stock.

In a stock exchange filing, ABG said that its board has approved an increase in its authorized capital stock to P3 billion from P600 million.

The company will also embark on a follow-on offering of 300 million to 620 million primary common shares.

The shares will be issued from the planned increase in the company’s authorized capital stock.

ABG said that it intends to subscribe to 10 million primary common shares of affiliate Concrete Stone Corp. (CSC) at a discounted price of P15 per share for a total of P150 million to provide working capital to CSC.

The subscription is also in line with ABG’s plan to fold in CSC as its subsidiary, subject to definitive documentation and applicable regulatory approvals.

CSC, a company chaired by businessman Francis Lloyd Chua, is engaged in the manufacturing and supply of construction solution materials.

Last month, ABG overhauled its board following the takeover of the group led by Chua.

Chua will lead ABG in its next chapter, having been appointed as the company’s new president and chairman.

He was joined by a new set of directors in the company.

In December last year, a consortium led by Chua’s PremiumLands Corp. entered into a share purchase agreement with Tiger Resort Asia Ltd, ABG’s major stockholder, for the sale of 200 million common shares equivalent to 66.67 of the total issued and outstanding capital stock of the listed company.

PremiumLands plans to create an end-to-end infrastructure group in the country through the backdoor listing in ABG.

PremiumLands is a real estate company engaged in land banking and real estate developments across the country.

The company is focused on the development of its mass housing projects under the Kabalayan brand.