Cagayan de Oro, Misamis Oriental (June 2, 2015)— The Italian-Filipino sustainable property developer, Italpinas Euroasian Design and Eco-development Corporation (ITPI), is set to launch an initial public offering (IPO) this year to raise P242 million for its new and ongoing integrated development projects.
In a filing with the Securities and Exchange Commission (SEC) obtained by the Manila Times on Tuesday, IDC said it will be offering 57.622 million primary common shares, priced at a maximum of P4.20 per share.
The final offer price will be determined on July 21, and the offer period will run from July 27 to 31. The company expects to list on the Small, Medium and Emerging Board of the Philippine Stock Exchange (PSE) on August 10.
P700-M market cap post-IPO
Upon completion of the offering, the company will have a total of 221.618 million issued and outstanding shares, 26 percent of which are the offered shares to the public and the remaining 74 percent held by the existing shareholders.
IDC will have a market capitalization of P700.16 million post-IPO, up from the current P480.68 million.
Unicapital Inc. is appointed as the sole underwriter of the issue.
Net proceeds of P220.8 million, after listingelated expenses and taxes, will fund capital expenditures (capex) for new projects (P120.68 million); land banking and acquisition (P47 million); retirement of existing loans (P20 million); and general working capital (P33.12 million). The money will be spent in the fourth quarter this year up to end-2016, the company said.
Ownership profile
Incorporated in January 2009 and formerly called Italpinas Euroasian Design and Eco-Development Corp., IDC is engaged in real estate development focused on architectural design and environmentally sustainable developments as demonstrated by its initial project, the Primavera Residences.
It is a joint venture between Italian architect Romolo Valentino Nati and Filipino lawyer Jose D. Leviste 3rd with his father Jose P. Leviste Jr., teaming up to establish sustainable developments in the Philippines.
To date, the company is 54.43-percent owned by the Levistes, 40 percent by Nati, 3.57 percent by Marito Garcia and 2 percent by Antonio Herbosa. Nati is IDC’s chairman and chief operating officer, while the younger Leviste serves as vice chairman and his father as president.
Boost to capex
From the IPO proceeds, P120.68 million will go to capex next year. From that will come funding for the development of Primavera City, a collective mixed-use development consisting of 7 residential condominium and commercial office buildings with solar panel arrays at the rooftop to promote green development. Primavera City will be located within Pueblo de Oro Business Park near SM City Cagayan de Oro and will be developed in four phases, with construction set to start by the fourth quarter of 2016.
P47M for land banking
Land banking will get P47 million from the net proceeds for prospective land purchases in Lipa, Batangas; Dumaguete, Negros Oriental and Iloilo City, which are all under negotiation as of press time.
According to the filing, IDC posted a bigger net income of P18.36 million last year from P5.3 million in 2013.
This year, the PSE expects nine to 10 companies listing on the exchange.
Aside from IDC, the anticipated listings this year include the IPOs of the Company of Friends Inc. (P7.7 billion), Gweilo Corp. (P95 million), Green Power Panay Philippines Inc. (P290 million) and SBS Philippines Corp. (P1.15 billion); the follow-on offering of Global Ferronickel Holdings Inc. (P32 billion); as well as the backdoor listing of National Book Store Inc. via Vulcan Industrial Mining Corp, and LBC Development Corp. via Federal Resources Investment Group Inc.
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