Property developer Ovialand Inc. has put off yet again plans to raise funds through an initial public offering after having found listed Tokyo-based real estate firm Takara Leben as partner in upcoming development projects.
“I want to be a good partner to Takara Leben. For us to be paralleling the IPO while opening projects with them might not be a balance of time. So right now our focus is to be a good partner,” Pammy Olivares-Vital, company president and CEO, said.
Vital said SB Capital Investment Corp. has advised the company to wait for the anticipated big-name IPOs as the SM group’s real estate investment trust and billionaire Enrique K. Razon’s Prime Infrastructure Inc.
“Once those are successful, that’s the signal that foreign investors are back and we’ll have a better chance of having a good IPO,” she said.
Ovialand first filed for its initial public offering at the Philippine Stock Exchange in March last year in hopes of raising as much as P2.21 billion.
In its registration statement, Ovialand planned offering 336 million primary common shares, up to 24 million secondary common shares and an over-allotment option of up to 36 million secondary common shares for up to P5.60 per share.
Ovialand were to use the net proceeds for land banking initiatives in Laguna and in Bulacan, the development of pipeline real estate projects in Laguna, Batangas, Quezon and Bulacan and for other general corporate purposes.
Three months later in June last year, Ovialand deferred the IPO plan citing volatility in local and global markets.
Ovialand’s first project with the Japanese firm is the 6.5-hectare Savana South project which will complement its presence in Laguna. Its development covers 657 homes seen generating P1.97 billion over four years.
This year, the company eyes pursuing two projects with its new Japanese partner.
