Posted on March 08, 2015 10:15:00 PM [
BusinessWorld Online ]
By Krista A. M. Montealegre, Senior
Reporter
MASS HOUSING developer Profriends
Group, Inc. is looking to make its stock market debut in the first half of the
year, the transaction’s underwriter said, adding that the entry of anchor
investors will likely mean a change in the size of the initial public offering
(IPO).
“We ran out of time last year. It’s
effectively redoing everything. It will take a bit of time but we’re looking at
first half of this year. That’s the target,” First Metro Investment Corp.
(FMIC) President Roberto Juanchito T. Dispo said in a recent interview.
FMIC is one of the underwriters
Profriends hired for its IPO, along with BDO Capital and Investments Corp.
Profriends plans to raise P7.7 billion
from the sale of 385.75 million primary common shares at a maximum price of P20
apiece to bankroll the development of its projects and finance its bid to boost
its land bank.
The offer shares represent 11% of the
company’s outstanding capital stock.
Further delays in the IPO may be risky
for Profriends and other companies that want to raise funds from the equities
market amid growing speculation that the US Federal Reserve may increase
interest rates in the second half of the year.
“Sentiment in the market is still okay
and that’s what Profriends wants to ride on,” Joyce Anne J. Ramos, stock
analyst at AB Capital Securities, Inc., said in a phone interview.
“There is speculation that the Fed
hike may happen in the second half of the year. That is the risk if that
happens this year,” Ms. Ramos said.
Demand for Profriends shares has
remained strong, Mr. Dispo said, with two regional investors looking at
participating in the maiden share sale.
“If the issuer wants, they can buy as
much as 10% which is the intended IPO size. The issuer may have to probably
increase the float to accommodate the anchor investors,” Mr. Dispo said.
“Or the issuer will decide to stick to
11% and less shares will be allocated for the anchor investors,” he added.
Anchor investors get first dibs on the
offer and usually join on the first day of order taking, boosting investor
confidence.
Capital raised in the stock market is
expected to hit P200 billion this year with the Philippine Stock Exchange
eyeing to bring 10 new names to the local bourse either through an IPO, listing
by way of introduction, or backdoor listing.
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