Property developer Italpinas sees profits doubling in 2016

By Leslie D. Venzon

MANILA, Nov. 4 (PNA) — Property developer Italpinas Development Corp. (IDC), which is planning to list in the local bourse next month, expects to almost double its profits to around Php100 million next year, as it raises funds to accelerate growth.

“We are close to Php100 million (in) net profit next year. Our growth will really be exponential, I’m quite confident,” said IDC chairman and chief operating officer Romolo Nati in an interview.

Nati hopes to exceed this year’s projected net income of Php56 million to Php59 million in 2016, bolstered by equity offering.

The company targets to raise net proceeds of Php220.8 million from the equity offering, of which about 55 percent or Php120.7 billion will partly finance Primavera City, a new mixed-use project in Cagayan de Oro City.

Around Php47 million will be spent for landbanking and acquisition of land in Lipa, Batangas; Dumaguete, Negros Oriental; Iloilo City.

The remaining Php33 million will be used for working capital and Php20 million for retirement of existing obligations/loans.

“I’m sure that the news regarding the IPO (initial public offering) will boost our sales. People, clients will feel more comfortable of buying (property) units from publicly listed company,” Nati further said.

Nati also bared plans to diversify into businesses related to sustainable development.

IDC also holds a 25-percent equity stake in Constellation Energy Corporation which is engaged in the renewable energy industry.

Meanwhile, IDC aims to list on the small, medium and emerging (SME) Board of the Philippine Stock Exchange (PSE) through an IPO of up to 57.622 million common shares at an offer price of up to Php4.20 apiece.

The offer period will run from Nov. 20, 23 to 26, while the listing date in on Dec. 7.

Upon listing, the offer will be equivalent to 26 percent of the company’s post-offer outstanding shares.

“They will be oversubscribed because I see a lot of interests. I’m quite optimistic. I guess because it’s a small one, we are not selling billions…,” Nati further said.

“Start-ups or those who are budding entrepreneurs should consider listing in the stock market in order to accelerate their growth. Why? Because the capital market will really give the businessmen the market to raise the money and if that properly (utilized,) you can even grow fast,” said Unicapital Inc. managing director Leonardo Arguelles Jr. in a press briefing.

Underwriter of the offering is Unicapital, Inc. (PNA)