Ovialand Inc., a socialized housing developer, hopes to raise as much as P2.21 billion from its initial public offering (IPO).
The company said it has filed paperwork for its IPO with regulators. In its registration statement, Ovialand said it plans to offer 336 million primary common shares, up to 24 million in secondary common shares and an over-allotment option of up to 36 million secondary common shares. The offer could reach up to P5.60 per share.
The offer period is set for the week of June 19. SB Capital Investment Corp. has been picked as the sole issue manager, lead underwriter and sole book runner for the IPO.
“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,” Pammy Olivares-Vital, the company’s president and CEO of Ovialand, said. “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,” she said.
Ovialand plans to use the net proceeds from the offering for land banking initiatives in Laguna and in Bulacan, development of pipeline real estate projects in Laguna, Batangas, Quezon and Bulacan and for other general corporate purposes
“The concept of premier family Living is about making the dream of homeownership accessible to all Filipinos—whether it be building homes sold at accessible price points or assisting clients in all stages of the homebuying process,” Vital said.
“This concept is central to Ovialand’s operations and as such, this IPO serves to strengthen the company’s commitment towards helping more Filipinos achieve that dream in the years to come.”
The company said its net profits last year reached P227 million, a 37 percent increase from the previous year’s P166 million, and a three-fold increase from P76 million in 2020.
Revenues grew 64 percent year-on-year to P1.4 billion, and Ovialand said it has grown its revenues by four times in the past three years on the back of rising demand for its projects.
Revenues of the company are based on houses turned over and with financing taken out from partner institutions.
Ovialand continued to invest in growing its portfolio as its total assets grew to P1.6 billion in 2022 from P1.1 billion in 2021.
“We are on track with our five-year growth strategy that was launched in 2021. Our strategy involves a regional growth approach,” Vital said.
“Last year, we began our entry to the Bulacan region that will cater to the Northern Metro Manila market. We continue to be bullish with our growth so that we can support the demand for premium quality housing at an affordable price point for our growing economy.”