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Profriends postpones P7.7-b IPO

Mass housing Profriends Group Inc. has moved its planned P7.7-billion initial public offering in the latter part of 2015.

Profriends president Guillermo Choa said in an interview at the sidelines of the Asia Real Estate Summit held at Makati Diamond Residences the validity of the company’s financial statement earlier filed with the Securities and Exchange Commission had already expired.

“So we will wait for our June 2105 financial statement before we re-file our IPO application,” Choa said. The company initially planned to hold the IPO in January this year.

Profriends earlier secured the approval of the Securities and Exchange and Commission to sell its shares to the public but has not obtained the go-signal from the Philippine Stock Exchange.

Choa said the property company remained interested in listing its shares this year.

The planned IPO will still depend on market conditions, with the company open on other funding options.

Profriends under the previous IPO application filed with the SEC will offer up to 385.75 million common shares at a price of up to P20 apiece.

The company plans to allocate up to 70 percent or 270.025 million shares to qualified institutional buyers through joint lead underwriters and 20 percent totaling 77.15 million to trading participants.

The remaining 38.575 million shares will be sold to local small investors.

Several foreign and local investors earlier expressed interest in investing in the company as cornerstone investors.

Profriends plans to earmark P3.1 billion from the expected proceeds of P7.71 to finance real estate projects in Cavite, Iloilo and Cagayan de Oro and P2.5 billion for additional equity investments in Williamton Holdings Inc..

Williamton is a wholly-owned subsidiary of Amicus Holdings, which handles the in-house financing requirements of Pro-Friends homebuyers.

Another P1.24 billion will be set aside for land acquisition while the remaining P611 million will be allotted for other corporate purposes.

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