Shares of Haus Talk Inc., the first company to list on the Philippine Stock Exchange (PSE) this year, were little changed during its debut on Monday.
Its shares closed 6 percent higher, or P0.10, to close at P1.60 from its listing price of P1.50 per share.
Haus Talk listing also braved the mainly jittery market conditions, with the benchmark PSE index shedding 37.51 points to close at 7,223.83 points.
The company’s listing also marks the debut of a participant in the PSE’s handholding program for micro, small, medium, and emerging enterprises (MSMEs).
“While this ceremony represents the end of House Talk’s initial public offering of its shares, and the start of it being a listed company, I also view it as the company’s graduation from the handholding program of the Philippine Stock Exchange,” PSE President and CEO Ramon S. Monzon said.
“This program is a free service offered by the exchange under which we conduct one-on-one sessions with potential listing applicant companies to help them navigate their listing roadmap and connect them with IPO financial, legal, and accounting advisors who can help bring their IPO journey to fruition.”
Monzon said there are more than 30 companies registered under the handholding program. “And we look forward to getting more of them listed this year and next.”
Manuel Ocampo, Investment and Capital Corp. of the Philippines managing director, said the company’s maiden share sale attracted wide participation from local stock brokers and small investors.
“We are allocating P25.1 million for capex [capital expenditures], P10 million for the acquisition of new technologies [hardware and software]. That will include the acquisition of a new ERP [enterprise resource planning] system. We are also investing into construction equipment to make our production more efficient,” the company said
The company sold to investors 500 million shares, grossing P750 million, proceeds of which will be used for land acquisition and project development.
It plans to spend P462.01 million for land acquisition, and P216.58 million for project development.
Haus Talk said it is looking at acquiring properties in Bacoor, Cavite; Calasiao, Pangasinan; Sta. Cruz, Laguna; and Antipolo.
The company also plans to use part of the proceeds for the development of its property in Mariveles, Bataan. The company will use around P216.58 million to develop its 240,647-square meter property, which is being eyed for an economic and socialized housing development.
“The project will be developed in three phases. with each phase commencing within the first three years of disbursement. The P216.58 million will be split among the land development, construction, and administration expenses of the project,” Haus Talk said.
For the first year, the company will allot P76 million for land development and construction, after which it will allot the remaining P140.58 million for the construction of the units which were pre-sold during the first year.
Trade Secretary Ramon Lopez meanwhile expressed hope that Haus Talk’s IPO will inspire more MSMEs to aspire for scaling up like Haus Talk.
“May this also serve to amplify the signal that our capital market is healthy and ready to support the growth of our MSMEs,” Lopez said.
Haus Talk caters to the mid to low-income families who want to live in affordable gated communities.