Primavera builder pushes back IPO
MANILA, Philippines – The Italian-Filipino builder of the Primavera Residences in Cagayan de Oro, Italpinas Development Corporation, has further pushed back by about two months its planned P242-million ($5.18-million) initial public offering (IPO).
Italpinas filed on August 28 an amended prospectus with the Securities and Exchange Commission saying it will plans to sell 57.62 million primary common shares to the public, priced at a max of P4.20 per share.
The number of shares to be sold, according to the prospectus, is equivalent to 26% of the company’s outstanding capital stock.
The property developer plans to sell the shares at a maximum offer price of P4.20 apiece although it said it will determine the final offer price on September 21.
The proceeds of the IPO will be used to finance its new and ongoing residential and mixed-use integrated developments in the pipeline.
It has pushed back the book-building period to September 14 to September 18, and the offer period, September 28 to October 2.
Italpinas also delayed further the listing of the shares at the Small, Medium and Emerging Board of the Philippine Stock Exchange (PSE) to October 12 from August 24. This, however, is still subject to regulatory approval.
Under the amended timetable, the share sale was slated from September 28 to October 2.
Italpinas hired Unicapital Inc. as issue manager and underwriter for the IPO.
Net proceeds of P220.8 million ($4.72 million) after listing related expenses and taxes will fund capital expenditures (capex) for new projects (P120.68 million or $2.58 million); land banking and acquisition (P47 million or $1 million); retirement of existing loans (P20 million or $427,876); and general working capital (P33.12 million or $708,562).
Proceeds from the IPO will be used in the fourth quarter this year up to 2016.
The P120.68-million ($2.58-million) capex will go to the development of Primavera City, a development of 7 buildings of mixed-use residential condominium and commercial office buildings which will feature solar panel arrays at the rooftop to promote green developments.
Primavera City will be developed in 4 phases to start construction by the fourth quarter of 2015.
According to the filing, Italpinas’ net income surged to P18.36 million ($392,867) last year from P5.3 million ($113,409) in 2013.
Formerly named Italpinas Euroasian Design and Eco-Development Corporation, the company was incorporated in January 2009 to engage in real estate development.
Its major shareholders include Jose Leviste, Jr. (49.67%), Italian architect Romolo Nati (40%) and Jose Leviste III (4.76%).
Other than Italpinas, Gweilo Corporation; Philstocks Financial, Incorporated; Green Power Panay Philippines, Incorporated; SBS Philippines Corporation; and Profriends Group, Incorporated are also hoping to debut on the PSE.
Only Crown Asia Chemicals Corporation, thus far, has made its debut on the local bourse this year. – Rappler.com
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