KEPWEALTH Property Phils, Inc. (KPPI) raised P384.77 million during its initial public offering (IPO), after its offer period ended last Friday.
BDO Capital & Investment Corp., which served as the transaction’s sole issue manager, underwriter, and sole bookrunner, said the company’s offering was well-received by investors.
“(The offering) went well. It was a small IPO so we didn’t even need to market. TP (trading participant) and LSI (local small investors) tranches were fully subscribed,” BDO Capital President Eduardo V. Francisco said in a text message over the weekend.
The property leasing and asset management company offered 67.032 million shares priced at P5.74 per share from Aug. 5 to 9. The shares will be listed at the Philippine Stock Exchange’s Small, Medium, and Emerging Board on Aug. 19 under the ticker “KPPI.”
Upon listing, the company will have a public float of 33.34% and a market capitalization of about P1.154 billion.
KPPI will use IPO proceeds to acquire about 3,500 square meters (sq.m.) of leasable office space. About P245 million will be spent for office spaces in Quezon City, Pasig City, and Makati City within the first half of 2020, while the rest will be for the purchase of office spaces in Davao.
Incorporated in 2005, the company currently owns 77 units with 98 leasable spaces of Kepwealth Center in the Cebu Business Park. The 15-storey building has been accredited by the Philippine Economic Zone Authority and has both domestic and multinational companies as its tenants.
The company also manages 459 units in different buildings in Metro Manila such as Oxford Suites, Medical Plaza Ortigas, Burgundy Corporate Tower, Burgundy West Bay Tower, Atrium Mall, Icon Macapagal, and Vivaldi Residences-Cubao Commercial Space.
Its asset management agreements have a standard term of five years, where it will be tasked to maximize the property’s value through market research, data analysis, and revenue forecasting.
KPPI’s net income grew 12% to P8.69 million in the first quarter of 2019, following a 13% uptick in revenues to P22.65 million.
In 2018, its net income stood at P34.3 million, flat from a year ago, while revenues rose 8% to P81.85 million.
KPPI is the first company to go public in 2019, amid market volatility seen over the latter half of 2018 extending until the first half of the year. Companies with IPO applications pending at the Securities and Exchange Commission include coconut product manufacturer Axelum Resources Corp. at P7.7 billion and Villar-led All Home Corp. at P20.7 billion. — Arra B. Francia