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.
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