Altus Property shares up 83% on listing day
Shares of real estate firm Altus Property Ventures Inc. (APVI), a potential real estate investment trust (REIT) vehicle of Robinsons Land Corp. (RLC), surged by 83 percent on Friday at its stock trading debut on the Philippine Stock Exchange (PSE).
As part of PSE’s rules on listing by way of introduction, or without any initial public offering, the 50-percent price increase ceiling was lifted on listing date to allow market forces to determine the price of APVI’s securities.
APVI’s shares closed at P18.50 per share on its listing day, which was held without fanfare as its debut coincided with the shutdown of the PSE’s trading floor for disinfection after an employee tested positive for the new coronavirus disease. The closing price gave it a market capitalization of P1.01 billion.
“We are delighted to have this new avenue for growth. APVI’s listing allows us to pursue business opportunities, unlocking possibilities for future ventures,” APVI president Frederick Go said in a press statement.
APVI’s stable recurring cash flows are seen to provide a “solid base and a steady source of funds for potential business expansion and other investments.”
Manny Cruz, chief strategist at Papa Securities, said APVI’s shares soared because it was “backed up by a reputable company, RLC.”
Joseph Roxas, president of Eagle Equities, said demand was high for new, albeit limited number of outstanding shares.
About 100 million common shares of APVI, formerly Altus San Nicolas Corp., were listed on the small, medium and emerging board of the PSE, representing 100 percent of the real estate company’s issued and outstanding common shares.
As a result of an earlier property dividend declaration, APVI now has 1,503 stockholders, of whom 1,035 own at least one board lot, resulting in a 32.9-percent public float. This made APVI eligible for listing without having to sell new shares to the public.
Incorporated in 2007, APVI currently owns and operates the North Wing of Robinsons Place Ilocos mall located in San Nicolas, Ilocos Norte.
“This financial strength provides a robust platform for future business growth,” the company said.
APVI expects to retain profitability by capitalizing on environmental, economic and social programs in the Philippines. —DORIS DUMLAO ABADILLA
