By Adam J. Ang
Altus Property Ventures, Inc. (APVI), a former unit of Robinsons Land Corp. (RLC), made its debut in the local stock market on Friday by way of introduction, or without immediately offering its shares publicly.
The real estate company applied with the small, medium and emerging board of the Philippine Stock Exchange in 2019 to list its total issued and outstanding common shares of 100,000,000 by way of introduction via RLC’s declaration of a property dividend to its shareholders. The local bourse approved its listing on June 26.
“We are delighted to have this new avenue for growth. APVI’s listing allows us to pursue business opportunities, unlocking possibilities for future ventures,” APVI Chairman and President Frederick D. Go said in a statement.
The company claimed it has a “stable” cash flow providing “a solid base and a steady source of funds for potential business expansion and other investments.”
APVI, which is incorporated in 2007, currently runs the north wing of Robinsons Place Ilocos mall in San Nicolas, Ilocos Norte.
The mall’s rooftop solar installation, which is a part of its sustainability efforts, helped in rationalizing the company’s operational expenses.
“APVI will also retain its profitable position by capitalizing on environmental, economic, and social programs in the Philippines,” it said.
Listed conglomerate JG Summit Holdings, Inc. said in a stock exchange disclosure that it now owns 60.97% of APVI’s total outstanding capital stock upon receiving 60,972,361 shares.
APVI sees benefits from synergies with its affiliates, “drawing upon the expertise and experience of RLC and the JG Summit Group.”
Meanwhile, the Securities and Exchange Commission approved RLC’s plan to offer P10 billion of fixed-rate bonds with an oversubscription option for P10 billion, expecting to net up to P19.75 billion in proceeds.
The company is offering the bonds at face value and it has the discretion to offer them in two series: Series C bonds that are due in 2023 and Series D bonds that are due in 2025.
RLC expects to earn P9.87 billion from these bonds, or up to P19.75 billion should there be oversubscriptions.
The proceeds will be used to partially fund its capital expenditure budget until next year. It will also use them to repay short-term loans maturing in the latter half of 2020.
The fixed-rate bonds were rated PRS Aaa by the Philippine Rating Services Corp.
The credit rating means RLC is expected to have an “extremely strong” capacity to meet its financial commitment. The bonds were also given a stable outlook, meaning it is expected to hold for the next 12 months.
The bonds will be listed and traded on the Philippine Dealing & Exchange.
RLC tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and Standard Chartered Bank as joint lead underwriters and bookrunners for the offer.