SEC okays Pro-Friends IPO

MANILA, Philippines - Pro-Friends Group Inc. has bagged the Security and Exchange Commission’s approval to proceed with its P7.7-billion initial public offering (IPO).

With the regulatory approval Pro-Friends is eyeing make its debut on the Philippine Stock Exchange on Jan. 14 next year.

The affordable housing developer will be selling up to 385.750 million primary common shares at a maximum price of P20 each, proceeds of which will be used for development and construction, land banking, and general corporate purpose.

Pro-Friends intends to use P3.1 billion of the eventual proceeds to finance several of its real estate projects in Cavite, Iloilo and Cagayan de Oro.

Some P2.48 billion, meanwhile, will be infused to subsidiary Williamton Holdings Inc. to expand the latter’s receivables portfolio.

Williamton carries in its portfolio the in-house financing requirements of Pro-Friends homebuyers.

Another portion of the proceeds or about P1.24 billion is being allocated by the company for land acquisition activity in the areas of Cavite, Iloilo and Cagayan de Oro.

Pro-Friends expects the final price of its maiden share sale to be finalized on Dec. 15. The offer period will run from Dec. 17 this year to Jan. 9 next year.

First Metro Investments Corp. and BDO Capital and Investments Corp. were tapped as the joint underwriters for the IPO.