Italpinas stocks rise in listing debut

MANILA, Philippines - Italpinas Development Corp. (IDC) made a successful listing debut yesterday, closing above its initial public offering price.

IDC opened at P5.40 each share prior to closing at P4.22 or higher than its IPO price of P3.60 per share.

In a press briefing following the company’s listing, IDC officials said being a listed company marks the beginning of a new era for the company.

“We are now taking broader steps as a company and this changes the way we do things,” said IDC president Jojo Leviste III.

Company chairman and COO Romolo Nati said the company plans to expand outside its residential projects and venture into mixed-use buildings which include hotels and commercial spaces for business process outsourcing (BPOs).

“We started this company six years ago and we will expand in terms of location and into other developments,” Nati said.

Leviste said the company wants to continue to grow and be the best in what it does.

IDC raised P207 million from its maiden share sale, of which P103 million will be used for capital expenditures for new projects, P40 million for land banking and acquisition, P28.25 million for retirement of existing obligations and P17.14 million for general working capital.

The company’s maiden project is Primavera City in Cagayan de Oro, which has a land area of 1,874 square meters.The project will be developed in three phases - the first one will be a mixed use condominium while the second one will involve a BPO and the last will host branded hotel and luxury apartments.

IDC will launch the first phase of the project in 2016 with an estimated cost of $14 million. This will comprise Primavera City Towera A & B, with 252 residential units, 17 commercial spaces and 24 office units.

Another mixed-use project targeted for launch in 2016 is its Miramonti project in Sto. Tomas, Batangas, with the cost of the first phase estimated at $15 million.

“Miramonti is a mixed-use, commercial and residential development. Around 13,000 square meters of commercial floor space are planned for the finished complex. Of this total, more than 3,000 sqm. will be built in the first construction phase,” IDC said.

Unicapital served as issue manager and underwriter for the IPO.

IDC plans to develop around $200 million worth of sustainable real estate projects in the next six years ranging from mixed-use buildings to condotels, hotels, resorts and beach mixed communities all over the country.

The company, formerly Italpinas Euroasian Design and Eco-Development Corp.  was formed in 2009.

IDC is the fourth company to list in the local bourse this year after Crown Asia, SBS Philippines and the Metro Retail Stores Group.