Corporate News

Outsourcing company, town center developer file for IPO

Posted on October 05, 2015

BUSINESS process outsourcing firm Pointwest Technologies Corp. and town center developer Philippine Primark Properties, Inc. are raising a combined P3.28 billion from their initial public offerings (IPO), according to regulatory filings, adding to the pipeline of maiden share sales slated for launch next month.

In a prospectus dated Sept. 29, Pointwest said it may generate P2.09 billion from the sale of as much as 417 million common shares with an overallotment option of 62.55 million at a price of up to P4.35 per share.

The offer shares consist of 278 million primary offer shares and 139 million secondary shares.

SB Capital Investment Corp. and Maybank ATR Kim Eng Capital Partners, Inc. were tapped as joint issue managers, lead underwriters and bookrunners. Evercore was appointed as financial advisor.

The final price will be set on Nov. 23 with the offer period targeted to run from Nov. 26 to Dec. 4, subject to the receipt of regulatory approvals. Estimated listing date on the Main Board of the Philippine Stock Exchange (PSE) is on Dec. 11.

Pointwest intends to use the net proceeds of roughly P1 billion for development of digital products (P317.798 million), expansion of delivery centers (P294.43 million), acquisition of applications and proprietary technologies (P224.328 million), expansion of US sales operations (P60.755 million), and general corporate purposes (P201.578 million).

Pointwest is a wholly owned Filipino service company, providing non-voice and higher value services to Fortune 500 companies in the US and a growing number of companies in the Philippines, New Zealand and Australia.

Among the company’s major clients in the US are Delta Airlines and JB Hunt Transport while its clients in the Philippines include Bank of the Philippine Islands and Bancnet.

For its part, Primark plans to sell up to 704.46 million primary offer shares, with a par value of 25 centavos per share, at a maximum offer price of P1.7 per share, raising P1.2 billion from the maiden share sale, according to prospectus filed on Sept. 24.

The offer shares comprise 26% of its outstanding capital stock after the offer.

Unicapital, Inc. was mandated as issue manager and underwriter.

The offer period is scheduled from Nov. 16 to 20 after determining the final price on Nov. 9, depending on the timing of securing the pre-requisite approvals. The shares will be listed on the Small, Medium and Emerging board of the exchange on Nov 30.

Net proceeds of P1.13 billion will be used for the construction of town centers in advanced stage of business development (P866 million), budget allocation for other future locations (P159 million) and general working capital purposes (P100 million).

Primark is building town centers in Cavite, Isabela, Pampanga, Pangasinan, Rizal, and Nueva Ecija with an aggregate gross floor area (GFA) of 40,008 square meters. The company currently has eight operating commercial projects housing supermarkets, dry good retailers, food operators, service shops, and an array of micro-retail stalls.

Primark is part of the LKY Group of Companies, which is engaged in real estate development, construction, hotel operations, terminal operations and dry goods retail.

Pointwest and Primark join the roster of IPO hopefuls eyeing to tap the equity market next month. These are Metro Retail Stores Group, Inc. (P6.17 billion), D.M. Wenceslao & Associates, Inc. (P21.7 billion), and DATEM, Inc. (P4.66 billion), which plan to raise a combined P32.5 billion from their respective maiden share sales.

“The third quarter is generally a weak quarter. Historically, the fourth quarter is more bullish so we can expect a lot of IPOs during this period,” Joseph Y. Roxas, president of Eagle Equities, Inc., said in a phone interview.

The other IPO candidates are Italpinas Development Corp. (P242 million); Gweilo Corp. (P95 million); Philstocks Financial, Inc. (P190 million); and Green Power Panay Philippines, Inc. (P290 million).

Only two firms -- Crown Asia Chemicals Corp. and SBS Philippines Corp. -- have joined the PSE this year. -- Krista Angela M. Montealegre