Rockwell Land PSE debut features flash mob dancers

MANILA, Philippines [UPDATED] – Lopez-led upscale property developer Rockwell Land Corp debuted at the Philippine Stock Exchange on Friday, May 11, accompanied by flash mob dancers.

Several Rockwell employees danced to “Celebration” to highlight the listing by way of introduction of Rockwell (trading symbol: ROCK) which aimed to raise around P9.1 billion for its expansion plans by listing all of its 6.23 billion common shares.

The dancers also egged traders and investors at the Ayala exchange to join their almost 10-minute performance. They also went on stage and danced next to some officials of Rockwell’s main stockholders — including Rockwell chair and Philippine Ambassador to Japan Manuel Lopez, First Philippine Holdings Corp chair Oscar Lopez, and Manila Electric Co. (Meralco) chair Manuel V. Pangilinan — who graced the event.

After Manuel Lopez rang the bell for Rockwell, its shares reached a high of P7.70 and closed at P4.90, a 235.6% increase from its listing price of P1.46.

Listing by way of intro in the exchange allows companies to have its shares traded without a trading cap and without having to undergo an initial public offering immediately.

From to two to 48,000

Rockwell is the developer behind the Power Plant Mall, residential One Rockwell and the Edades Tower.

Its major stockholders include power firms First Philippine Holdings Corp (FPHC) and Manila Electric Co. (Meralco) that forayed into real estate in the 1990’s by developing its landbank in Makati City after the Lopez groups shut its thermal power plant there. Now called Rockwell Center, the 15.5 hectare property is now an upscale commercial-residential development.

Previously, Meralco — which the Pangilinan-led group has acquired from the Lopezes — announced that it is divesting its 51% stake in Rockwell via property dividends. The remaining shares are held by Lopez-led FPHC.

The listing resulted in Rockwell having 48,269 shareholders from only two shareholders—First Philippine Holdings Corp. and Meralco.

The firm’s officials had said they are allotting bulk — P8 billion — of the listing proceeds for capital expenditures as it takes advantage of renewed interest in property development.

Rockwell plans to expand into horizontal development and serviced apartments. It recently broke ground in its upcoming townhouse project at a 1.8-hectare property near Santolan-Ortigas intersection.

P1-B income in 2012

Rockwell chair Manuel Lopez told reporters that the firm has other prime lots in Metro Manila with about 450,000 sqm total area that they could develop. This includes the 3.6-hectare property adjacent to the Power Plant Mall in Makati also known as the Colgate-Palmolive compound.

He added that they expect to post a 20% net profit increase this 2012 and break the P1 billion mark from a net income of P950 million in 2011.

Target revenues for the year is P7 billion after it hit P6.2 billion in 2011, as the company banks on revenues from various developments come on stream.

Currently, the earnings mix within the company’s business is 40% recurring income from its mall and 60% from residential sales, according to Rockwell Land president Nestor Padilla.

“As we scale up, recurring income will always grow faster than the residential side. We’d like to keep it at 65 (residential) – 35 (commercial),” Padilla noted.

The festive mood at the stock exchange has been apparent with the main index hitting record highs over a dozen times this year.

Listings have likewise been festive. Previously, local budget carrier Cebu Pacific featured dancing flight attendants when it listed in 2010. – Rappler.com