CONSTRUCTION firm DATEM Inc. said on Monday its decision to defer a P4.66-billion initial public offering was due to capital market uncertainty which would have been detrimental to the company and its prospective investors.
In an advisory posted on the local stock exchange on Monday, DATEM said the decision to defer and adjust the timetable for the IPO was “primarily due to the uncertainty in the capital markets prevailing at the time of pricing.”
“The company recognizes that pursuing the transaction under such an abstruse investment environment may not be beneficial to the company, the investing public, and the Philippine capital markets as a whole,” the company said.
Based on the earlier approval given by the PSE, DATEM would have started its offering on Tuesday Nov. 24 through December 1 and it would listed on the local bourse on Dec. 8.
DATEM was planning to sell 329.05 million shares at a maximum price of P14.15. The primary offer will consist of 257.51 million shares while secondary shares amounting to 28.62 million will also be offered. Overallotment option will consist of 42.92 million shares.
First Metro Investment Corp. and BPI Capital were mandated to arrange the offering.
About 32.2 percent of the proceeds will be used to fund the capital outlays for construction, such as to purchase various construction equipment for high-rise construction projects, modernization, relocation and expansion of pre-cast plant facilities and equipment as well as diversificaton into infrastructure works.
Another 28.9 percent of the proceeds will be used for the landbanking and construction activities of residential subsidiary Datem Homes Inc. while 10.6 percent will be used by subsidiary Datem Water Inc.
The company intends to maintain a minimum annual dividend payout ratio of 15 percent of its audited consolidated net income in the preceding year.
In 2014, DATEM posted a net income of P860 million out of P7.39 billion in revenues. In the first six months of 2015, net profit amounted to P138.28 million out of P3.8 billion in revenues.