PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

Pro-Friends eyes IPO in Q3

By Neil Jerome C. Morales (The Philippine Star) | Updated August 11, 2014 - 12:00am

MANILA, Philippines - Affordable housing developer Property Company of Friends Inc. (Pro-Friends) is taking the initial public offering (IPO) route to raise as much as P6 billion that would support landbanking and project development.

Pro-Friends has abandoned its earlier plan of conducting a backdoor listing given strong interest of fund managers, its underwriter said.

“They are planning to do the IPO. We’re looking at September or October [listing],” said Roberto Juanchito Dispo, president of First Metro Investment Corp. (FMIC), one of the most active underwriters for debt paper issuances and IPOs this year.

“Pro-Friends has been appreciated by the fund managers. They are really profitable,” Dispo said, adding that a non-deal roadshow was conducted last week.

In June, Pro-Friends was reportedly planning to join the local bourse via the backdoor route by acquiring dormant listed firm Asiatrust Development Bank Inc.

A backdoor listing occurs when a listed firm is acquired by a private company, resulting in a change in business. It is believed to be a cheaper and faster way to achieve a listing status.

Dispo said Pro-Friends targets to raise P5-to P6 billion from the IPO by selling 10 to 11 percent of its outstanding shares to domestic investors.

Proceeds from the IPO would support the landbanking and expansion programs of the affordable housing developer.

“They are focused mainly on the bottom of the pyramid. They call it the economic low-cost housing market, which is the most unserved housing segment,” Dispo said.

Pro-Friends is expected to book between P5-to P6 billion in earnings this year, significantly higher than the P3.5 billion in 2013, Dispo said.

The affordable housing builder, which was established in 1999, has built more than 25,000 housing units and completed 52 projects in Cavite, Iloilo and Metro Manila.

It has 11 ongoing projects and 15 completed projects.

Pro-Friends develops communities that feature homes, schools, call centers, hospitals and malls.

It is the company behind the Bellefort Estates, Lancaster Estates, California West Hills, Carmona Estates, Greensborough Subdivision, Las Verandas Villas, Montefaro Village-West and Ridgecrest in Cavite; Monticello Villas and Parc Regency Residences in Iloilo; and Mahogany Mansion in Metro Manila.

Numerous companies have listed in the local bourse this year. Top Frontier Investment Holdings Inc., the majority shareholder of diversified conglomerate San Miguel Corp., listed by way of introduction in January.

DoubleDragon Properties Corp. and Century Pacific Food Inc., the Philippines’ largest canned goods producer, conducted an IPO in April and May, respectively.

Last month, Phoenix Semiconductor Philippines Corp., a unit of a South Korean semiconductor giant, secured the regulatory approval to debut in the local bourse this year.

real estate central philippines
Copyright ©2008-2018