THE initial public offering (IPO) of developer Property of Friends Group Inc. (Pro-Friends) could happen during the first quarter of the year, as the company needs to resubmit its documentary requirements to the regulators.
First Metro Investment Corp. (FMIC) President Roberto Juanchito Dispo said they ran out of time last year to make the IPO and, as a result, it will do a fresh financial review and audit of the company and secure a regulatory approval from the Philippine Stock Exchange and update its documents submitted to the Securities and Exchange Commission (SEC).
The SEC already approved Pro-Friends IPO last year.
“We’re targeting the December 31 audited financial statement and then, once that FS gets finalized, we will lodge fresh regulatory approvals,” Dispo told reporters at the sidelines of FMIC’s economic briefing on Wednesday.
“Reasonably, we can do it by the first quarter including road shows and investors’ briefing. But there are no changes on the terms,” he said.
Dispo said there may be no “blockbuster” IPOs this year, but rather “bite sized”, or those companies that will raise about P1 billion to P2 billion.
According to the registration statement of Pro-Friends, formerly known as Amicus Holdings Inc., it plans to raise some P7.44 billion from the offering of up to 385.75 million unissued common shares at P20 apiece.
BDO Capital and Investment Corp. and FMIC were picked as joint issue managers and bookrunners.
Pro-Friends’s previous offer was supposed to commence last December 17, to end on January 9.
The company said that of the proceeds, about P2.48 billion will be infused to its financing unit, Williamton Holdings Inc., for the expansion of its receivables. Williamton will be later on be renamed as Pro-Friends Financing Corp.
Some P1.24 billion will be used to purchase more land in already identified areas. As of June 2014, the company is set to purchase some 104.48 hectares of property in Cavite province; 101.22 hectares of land in Cagayan de Oro; and 26.97 hectares in Iloilo. The property will yield the company 13,045 units of various types, but mainly for the low income.
The rest of the proceeds of about P600 million will go to general corporate purposes.
“Pro-Friends shall further undertake the development of a private-road network link to Daang Hari in Bacoor, Cavite, making Lancaster New City easily accessible as well to and from other parts of Metro Manila and Laguna,” it said.
The company said that it will strengthen and expand its regional presence in the Visayas and Mindanao, while going further into budget houses that cost as low as P300,000 per unit.
Pro-Friends, in 2012, acquired Firm Builders Realty Development Corp., a socialized-housing developer that completed a total of 26 projects in key cities outside of Metro Manila, some of the units of which only had floor areas of 24 to 42 square meters.