Amicus Holdings plans P8-B IPO
MANILA, Philippines – Amicus Holdings Inc., the parent company of residential developer Property Company of Friends Inc. (Pro-Friends), is raising about P7.715 billion ($176.18 million*) from a planned initial public offering (IPO) in October.
The IPO proceeds will be used to finance the real estate projects of Pro-Friends, and acquire land for future developments.
In particular, Amicus Holdings will spend P3.15 billion ($79.93 million) for expansion, P2.48 billion ($56.63 million) for an equity investment in Willamton Holdings Inc., and P1.24 billion ($28.32 million) for the acquisition of additional properties in Cavite, Iloilo, and Cagayan de Oro.
Williamton is Amicus Holdings' subsidiary that handles the in-house financing requirements of Pro-Friends homebuyers.
Apart from residential development, Amicus Holdings is also engaged in retail and office leasing and consumer finance.
Documents filed with the Securities and Exchange Commission showed that Amicus Holdings will sell 385.750 million primary shares to domestic investors for up to P20 ($0.46) per share.
Offer period will run from October 8 to October 14. Listing date has been tentatively set on October 17.
Amicus Holdings hired First Metro Investments Corporation and BDO Capital and Investments Corporation as joint underwriters for the IPO.
Pro-Friends have already built over 26,000 affordable housing units mostly in Cavite and Iloilo since 1999.
One of its projects is Lancaster New City, which is currently the largest residential project of Pro-Friends with a total land area of 1,435 hectares with over 11,000 units sold.
Other projects include the 110-hectare Bellefort Estate in Bacoor, Cavite, the 72-hectare Carmona Estates, and the 172 hectare Iloilo Estates Inc.
Early this year, Amicus Holdings formed its second residential unit, Micara Land Inc., to mark its foray into socialized and economy housing. Projects in this segment will cost between P650,000 ($14,843.40) and P1.2 million ($27,403.20).
The company also intends to expand its geographic presence nationwide through landbanking.
In 2013, Amicus Holdings posted a net income of P3.4 billion ($77.62 million) and revenues of P10.2 billion ($232.93 million).
Amicus Holdings is the second company to file an IPO application this month. SSI Group Inc., a leading specialty retailer of international brands owned by the Rustan’s Group of Companies, applied for an IPO worth P12.42 billion ($283.62 million). – Rappler.com
($1 = P43.79)