SEC greenlights Italpinas’ P242-M bourse debut

The Securities and Exchange Commission (SEC) has approved a plan by niche real estate developer Italpinas Development Corp. to raise as much as P242.18 million from its stock market debut.

Based on documents from the SEC, Italpinas plans to offer 57.622 million primary shares for up to P4.20 per share. This will bring to public hands about 26 percent of the company’s stock ownership.

The net proceeds will be used to boost capital expenditures for new projects, land banking and acquisition, retirement of existing obligations and for working capital in general.

Local investment house Unicapital Inc. was mandated as underwriter and issue manager.

The issuance would still have to be approved by the Philippine Stock Exchange (PSE), where Italpinas has filed an application to list on the small and medium enterprise (SME) board.

The company’s biggest shareholders are businessman Jose Leviste Jr., who holds 49.67 percent, and architect Romolo Valentino Nati, who holds 40 percent.

Italpinas’ first real estate project was Primavera Residences in Cagayan de Oro City, a twin-tower mixed-use development. The first tower was completed in 2012 and the second tower is set to be completed this 2015.

Its newest mixed-use project is Primavera City, which is also located in Cagayan de Oro.

The company is currently planning various projects in diverse locations.

It is in the process of acquiring a 1,796-square meter property located at San Rafael in Sto. Tomas, Batangas province, based on Italpinas’ registration statement. It also has the right of first refusal on an adjacent 5,347-square meter property.

It is also planning to enter the property markets in Lipa, Batangas, as well as in Dumaguete in Negros Oriental, Iloilo City and Subic Bay Freeport.

Based on its regulatory filing, the firm’s goal was to deliver “maximum returns by seeking most promising local growth rates, such as those in hyper-prospective secondary and tertiary Philippine cities.”

Italpinas also holds a 25 percent stake in Constellation Energy Corp., which is into the development of renewable energy facilities.

As of 2014, Italpinas had P480.21 million in assets. It posted a net income of P18.36 million out of P133.88 million in net sales for the year.