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SEC approves Globe Asiatique IPO

Posted on 07:43 PM, March 19, 2010 [ BusinessWorld Online ]


CORPORATE REGULATORS have approved the initial public offering (IPO) of Globe Asiatique Realty Holdings Corp., which will raise nearly P3 billion for the property developer.

The latest decision of the Securities and Exchange Commission (SEC) paves the way for what will be the second IPO of a local firm this year.

Globe Asiatique will secure as much as P2.869 billion in net proceeds from the share sale, to be used for new projects and debt repayments.

"Of the total [170.455 million] offer shares, up to 136.365 million new common shares are being issued for subscription by the company from its authorized and unissued capital, and up to 34.09 million existing common shares are being offered by the selling shareholder," the SEC said.

Globe Asiatique also granted Banco de Oro Capital and Investments Corp., the issue manager and lead underwriter, an over-allotment option of up to 168.705 million common shares.

The property developer will offer the shares for P6.50-P10.00 each.

The company expects to raise net proceeds of P806,136 million to P1.242 billion from the primary offering. "But should the underwriter exercise the over-allotment option, net proceeds to the company from the offer is expected to be approximately P2.869 billion," the SEC said.

Around P850 million will be used to pay debts, and the rest to start new projects.

Globe Asiatique has built 13,400 housing units in nine projects for the low- and middle-income segments. The property developer operates the Xevera brand for its subdivision projects and Sameera for socialized and low-cost township projects.

"The company is currently in the plannning process of developing Xevera projects in Bacolod, Subic and Mindoro, and Sameera projects in Angeles City in Pampanga and Subic in Zambales," Globa Asiatique said in its prospectus.

To date, it has a land bank totalling 215,188 square meters.

Profits of Globe Asiatique, which is owned by businessman Delfin Lee, rose by 82% last year to P502 million from P275 million in 2008.

On Thursday, the SEC approved the initial public offering of Cebu Air, Inc., the airline unit of Gokongwei-led JG Summit Holdings Inc. and operator of budget airline Cebu Pacific. -- Neil Jerome C. Morales

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