Calapan Ventures to hold IPO in November

The Philippine Stock Exchange has approved a plan of Calapan Ventures Inc. (CVI), owner of the waterworks system in Calapan City, Oriental Mindoro, to hold an initial public offering in November.

CVI seeks to raise P84.32 million to P105.4 million from the IPO, after which about 26 percent of its shares will be held by the public.

The company owns Calapan Water Works Corp., one of the few privately owned water systems in the country. It is a subsidiary of publicly listed Jolliville Holdings Corp.

CVI will offer 42.16 million shares at P2 to P2.50 per share. The offering is scheduled for November 14 to 18 after a final pricing of shares on October 24. To be offered are primary shares that are targeted for sale and distribution to domestic investors.

Investment house Unicapital Inc. was mandated to arrange the offering. The tentative listing of 162.16 million post-IPO shares is targeted by November 24. The company will thus have a post-IPO market capitalization of P324.32 million to P405.4 million.

Proceeds from the IPO will be used for the following:

–Fund the rehabilitation and expansion projects of Calapan Waterworks Corp.;

–Expand storage facilities, particularly the construction of one overhead reservoir and the installation of transmission and distribution lines form the reservoir to the water system; and

–Undertake zoning works in 26 barangays (villages), such as the installation of district meters and isolation valves and extensive replacement of meters to reduce leakages or nonrevenue water (NRW) to its target level of 20 percent.