By Keren Concepcion G. Valmonte, Reporter
RESIDENTIAL developer Haus Talk, Inc. has priced its initial public offering (IPO) shares at its ceiling of P1.50 apiece, the company said in a letter to the exchange on Wednesday.
“This may be a sign of optimism, given the better market sentiment amid the COVID-19 (coronavirus disease 2019) cases in the country remaining low over the past few weeks,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.
With the P1.50 per share price tag, the company may raise up to P750 million from the sale of 500 million primary common shares.
In its preliminary prospectus dated Dec. 14, Haus Talk said it plans to use net proceeds “to bolster its growth” through land acquisitions and project development. The company also plans to use proceeds for general corporate purposes.
Haus Talk will be allocating 64% of the proceeds or P462 million to acquire properties in Antipolo City, Bacoor in Cavite, and Calasiao in Pangasinan. It plans to develop the properties from 2022 to 2024.
“In the case of the land acquisition activities of the Company amounting to an estimated value of [P640 million], the difference between the estimated value and allocation of proceeds amounting to P462,014,575, will be sourced from internally generated funds and debt,” the company said.
Meanwhile, Haus Talk plans to use 30% or P216.58 million to develop its 240,647-square meter (sq.m.) property in Mariveles, Bataan. The company is eyeing to build a 2,200-unit horizontal socialized housing project, which is expected to bring in P2.8 billion in revenues.
“The project will be developed in three phases, with each phase commencing within the first three years of disbursement. The P216.58 million will be split among the land development, construction, and administration expenses of the project,” Haus Talk said.
Haus Talk is also allocating 6% or P45.10 million of net proceeds to acquire equipment and to hire “executive-level talents,” which include heads of finance, information and technology, investor relations, audit and risk management, and human resource.
According to the Dec. 14 prospectus, the company plans to conduct its offer period from Jan. 3 to 7 next year, while its listing at the small, medium, and emerging (SME) board of the Philippine Stock Exchange (PSE) is tentatively scheduled for Jan. 17.
Haus Talk is slated to be the first company to debut at the PSE next year. It will list under the stock symbol “HTI.”
“With the offer period scheduled next year, this may give investors enough time to decide on their subscriptions given the upcoming holidays,” Mr. Pangan said.
Haus Talk tapped the Investment & Capital Corp. of the Philippines to be the offer’s underwriter and issue manager.