MANILA, Philippines -The Olivares family-led housing developer Ovialand Inc. filed a P2.2-billion initial public offering (IPO) plan on Thursday to boost its pioneering premium affordable homes business and grow its land bank by nearly five times to over 200 hectares in five years.
The builder, which is also partly owned by mass housing veteran Januario Jesus Gregorio Atencio III, is selling up to 396 million shares in June at a maximum offer price of P5.60 per share, its prospectus dated March 17, 2023 showed.
SB Capital was tapped as sole underwriter for the offer.
“Our public listing marks a new chapter in our history, as this is a launchpad for us to achieve greater milestones in providing the premier family living experience to our customers,” Ovialand CEO Marie Leonore Fatima “Pammy” Olivares-Vital said in a separate statement on Thursday.
Ovialand gave approximate dates of the IPO in its prospectus. It said pricing of the shares would happen around June 12 this year while the offer period would start on the week of June 19.
The developer is targeting to make its Philippine Stock Exchange trading debut under the stock symbol “OLI” on July 4 this year.
“As we aim to expand our presence beyond the core markets we operate in, this IPO will be key to us in meeting our clients’ ever-evolving needs,” Olivares-Vital said.
Ovialand is selling up to 336 million “primary” common shares to raise about P1.89 billion to finance expansion, including the acquisition of land for future development and for project development.
Atencio’s Januarius Holdings Inc., which owns 20 percent of Ovialand, would sell up to 24 million “secondary” shares worth P134.4 million while the Olivares family’s 1802 SJ Holdings Inc. would sell up to 36 million secondary shares worth P201.6 million for post-IPO price stabilization activities.
The bulk of the net proceeds from the primary offer—or P860 million—would be used for land acquisition between 2023 and 2024 while P764 million would be used for the development of projects between 2024 and 2025.
It would also set aside P170 million for general corporate purposes, the prospectus showed.
Started in 2014, Ovialand has turned over 1,614 homes each priced between P2 million to P4 million over the last six years.
It has a land bank of 42.6 hectares and plans to acquire 40 hectares more in Laguna, Batangas and Bulacan over the next two years.
The company is also planning to accelerate expansion in the next five years as it aims to grow its land bank to 217 hectares, the prospectus showed.
Ovialand is selling nearly 33 percent of its shares to outside investors and is targeting a market value of P6.75 billion at the indicative offer price.
In 2022, it grew net income by nearly 37 percent to P226.6 million while revenues climbed 64 percent to P1.37 billion, its prospectus showed. INQ
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