Datem files P4.6-B IPO

MANILA, Philippines - Local construction firm Datem Inc. has formally filed with the Securities and Exchange (SEC) an application for an initial public offering (IPO) of its shares at a price of up to P14.15 per share, translating to about P4.6 billion in total proceeds.

The offer consists of up to 286,127,185 common shares and 42,919,078 optional shares pursuant to an over-allotment option, according to the company’s application.

Proceeds would be used to fund expansion activities in construction, housing and bulk water, said company president Levy Espiritu.

“The company is geared for bullish growth in the construction industry and in its subsidiary businesses,” he said.

He said the company has over 30 years of experience and has successfully established itself as a reliable and reputable constructor with a wide range of residential and commercial projects for various clients.

Datem’s projects include Discovery Primea, a luxury residential tower in Makati; Discovery Shores in Boracay and the Mind Museum, the Philippines’ first world-class science museum and a LEED Gold-certified building for design and construction.

Just recently, the company made its foray into the housing sector through Datem Homes which focuses on the delivery of well-planned communities and top quality affordable homes. 

In addition, Datem Homes has pipeline projects in Rizal and Davao.

Datem has also ventured in bulk water supply and wastewater treatment services through Datem Water Inc.  

The company currently has a 15-year bulk water supply contract with Metro Kalibo Water District.

Espiritu said the company’s strategy is to take advantage of its strong market position and technological expertise.  

“As we capitalize on the growth potential of the construction industry, we are also undertaking expansion activities in housing development and bulk water services where our technological capabilities can be applied,” he said.

BPI Capital Corp. and First Metro Investment Corp. have been appointed as joint issue coordinators, joint lead underwriters and bookrunners for the offer. Target listing of the company’s shares at the stock exchange is on end November 2015.