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ProFriends woos cornerstone investors ahead of IPO

By Jenniffer B. Austria | Oct. 19, 2014 at 11:01pm [ ]

Property developer ProFriends Group Inc. plans to sell up to 20 percent of the total shares under the planned initial public offering next month to cornerstone investors.

ProFriends Group plans to raise up to P7.7 billion in proceeds in the IPO which would involve the sale of 385.750 million shares at P20 apiece.

Roberto Juanchito Dispo, president of First Metro Investments Corp., one of the underwriters for the IPO, said ProFriends recently completed the presentations to various fund groups including insurance companies, mutual funds and asset managers.

He said ProFriends also planned to hold a roadshow over the next two weeks in Hong Kong and Singapore to attract institutional investors.

“The maximum [that we will be selling to key cornerstone investors] will be 10 to 20 percent of the offer shares,” Dispo said.

“We would like to believe that ProFriends offers better investment value proposition. Out of all the companies going public, this is the most profitable,” Dispo said.

Dispo said ProFriends was poised to generate P6 billion in net income this year, up from P3.4 billion in 2013.  Profit was forecast to hit P7.5 billion in 2015.

ProFriends plans to use proceeds from the IPO to finance several real estate projects in Cavite, Iloilo and Cagayan de Oro as well as acquisition of land for future developments.

ProFriends said it would spent P3.1 billion for expansion, P2.48 billion in equity investment in Willamton Holdings Inc. and P1.24 billion for acquisition of additional properties in Cavite, Iloilo and Cagayan de Oro.  Williamton is a wholly-owned subsidiary of Amicus Holdings which handles the in-house financing requirements of Pro-Friends homebuyers.

ProFriends is also engaged in retail and office leasing and consumer finance.  The company has built over 26,000 affordable housing units mostly in Cavite and Iloilo since 1999.

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