Brave ‘small’ firm beats giants for first IPO of the year

Property leasing and management firm Kepwealth Property Phils. Inc. (KPPI) has obtained clearance from corporate regulators to pursue a P384.8-million stock debut this August, becoming the first company to brave the equities market this year.

Based on an initial public offering (IPO) circular posted on the Philippine Stock Exchange (PSE), whose board gave the go signal on July 24, KPPI would list on the small, medium and emerging board of the local bourse by Aug. 19.

KPPI will offer from August 5-9 up to 67.03 million primary common shares for up to P5.74 per share, bringing to public hands about a third of the company. The IPO price is set to be finalized by Aug. 1.

“It may have taken some time before we had our first IPO but I am pleased that KPPI is embarking on its maiden share sale. I hope that this move will encourage other companies that pushed back their IPOs to revisit their plans and consider the stock market as an avenue for capital raising,” PSE president and chief executive Ramon Monzon said in a press statement.

BDO Capital & Investment Corp. was mandated as the lead underwriter, sole issue manager and sole bookrunner.

KPPI, which Euro Capital Land purchased from the Keppel group of Singapore, owns a mix of office and residential building in Kepwealth Center Cebu, a Philippine Economic Zone Authority-accredited 15-story property. It also acts as an asset manager for commercial, office and residential units in several buildings across Metro Manila.

KPPI chalked up a net profit of P34.3 million in 2018 out of P81.85 million in revenues.

The IPO is estimated to give the company a market capitalization of as much as P1.15 billion. Proceeds will be used to diversify its asset base.