SEC documents show that JHC plans to raise P102.8 million from the sale of shares to the primary and secondary markets.
SEC said JHC has registered 281.5 million shares and will be offering 30 million new common shares in its IPO while selling another 64.3 million shares in the secondary market.
JHC is owned by the Ting Family which owns and operates the local municipal waterworks system of Calapan City, Oriental Mindoro through its direct subsidiary, Calapan Water.
Calapan Water is the holder of a 25-year legislative franchise for the municipal waterworks of Calapan City, backed by the certificate of public convenience awarded by the National Water Resources Bureau (NWRB).
According to JHC, the gross proceeds to the IPO will be used to partially rehabilitate its waterworks system under a 10-year medium term development program estimated to cost a total of P210.829 million.
JHC said its NWRB certificate is good until 2003 but its legislative franchise is scheduled to expire in June 2002.
The company said its application of renewal is pending with Congress but it expressed optimism that the extension would be granted since there is no other applicant for the franchise.
Based on its registration papers, JHC plans to list all 281.5 million shares on the first board of the Philippine Stock Exchange where the company’s listing application is currently being processed.
Gross proceeds from the sale of the offer shares will reach P102.8 million at a selling price of P1.09 per share. Of this, about P32.7 million will go to the company while the balance will be given to the selling shareholders.
BV Partners has been contracted to act as financial advisor while Keppel I VI Investments Inc. has been hired as lead underwriter and issue manager of the IPO.
JHC said the secondary shares will be sold by Elgeete Holdings Inc., Febra Resources Inc. A Net-Resources Corp., Kenly Resources Inc. and Oltru Holdings Corp. These companies, JHC said, have not started operations as of December 2000 but they were all incorporated in 1999.
As of December 2001, JHC’s authorized capital stock stood at P1 billion with a subscribed and paid-ud portion of P251.5 million. Of this amount, 99.45 percent is held by the selling shareholders of whom majority are members of the Ting Family.
JHC is chaired by Jolly L. Ting who also sits as chief executive officer. The company’s president is Kenrick G. Ting and treasurer is Ortrud G, Ting.