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Italpinas’ IPO plan cleared

Posted on October 31, 2015

PROPERTY DEVELOPER Italpinas Development Corp. obtained the corporate regulator’s green light to undertake its P242-million initial public offering (IPO) in what could be the fifth maiden stock market listing this year.

The Securities and Exchange Commission (SEC) approved Italpinas’ planned maiden share sale in an executive meeting on Thursday, Armando A. Pan, Jr., officer-in-charge of the Office of the Commission Secretary, said in an interview.

The real estate firm is selling up to 57.662-million primary common shares at up to P4.20 apiece, according to its registration statement filed on May 20. The shares to be offered comprise 26% of the company’s outstanding capital stock.

Net proceeds of P220.8 million from the equity offering will be allocated for capital expenditures to fund for new projects (P120.68 million), land banking and acquisition (P47 million), retirement of existing obligations/loans (P20 million), and general working capital (P33.12 million).

According to the latest available IPO timetable, the offer period will run from Nov. 3 to Nov. 9 with listing of the shares on the Small, Medium and Emerging (SME) Board of the Philippine Stock Exchange (PSE) slated on Nov. 16.

Unicapital, Inc. was tapped as issue manager and underwriter of the IPO.

Italpinas is the company behind Primavera City, a mixed-use project consisting of seven residential and commercial buildings in Cagayan de Oro City. Primavera integrates into its design eco-friendly features such as rooftop solar panels to generate part of the buildings’ electricity supply and reducing power use by maximizing natural light and wind ventilation. The firm is acquiring a property in Sto. Tomas, Batangas where the company plans to undertake a mid- to high-rise residential project. The company also plans more projects in Lipa, Batangas; Cagayan de Oro, Misamis Occidental; Subic, Zambales, Montelago, Oriental Mindoro; Dumaguete, Negros Oriental; and Iloilo City, Iloilo.

Italpinas is the fifth company to gain SEC approval for an IPO this year after Metro Retail Stores Group, Inc. and Datem, Inc. Crown Asia Chemicals Corp. and SBS Philippines Corp. joined the stock market earlier this year.

Aside from these firms, the other IPO candidates are D.M. Wenceslao & Associates, Inc. (P21.7 billion); Pointwest Technologies Corp. (P2.09 billion); TVI Resource Development Phils., Inc. (P1.51 billion); Philippine Primark Properties, Inc. (P1.2 billion); Gweilo Corp. (P95 million); Philstocks Financial, Inc. (P190 million); and Green Power Panay Philippines, Inc. (P290 million). -- Krista Angela M. Montealegre