Kepwealth marks stock market debut, first this year

MANILA, Philippines — Kepwealth Property Philippines Inc. (KPPI) successfully made its debut in the Philippine Stock Exchange yesterday, making it the first company to do an initial public offering (IPO) for the year.

KPPI raised P384.77 million from the sale of 67 million common shares at P5.74 per share.

The company listed on the small, medium, emerging  board of the PSE.

PSE president  Ramon Monzon welcomed the listing and expressed hopes that other companies would be encouraged to list or proceed with their previous IPO plans.

Ed Francisco, president of BDO Capital and Investment Corp., said “We are pleasantly surprised with KPPI’s trading performance. It is the first company to use the PSE’s new easy facility for online applications for local small investors. I am sure investors from all over the country who bought the shares are delighted with their investment.”

BDO Capital was the sole issue manager, underwriter and sole bookrunner.

KPPI plans to use the net proceeds to diversify its asset base and expand its office leasing portfolio with the acquisition of about 3,500 square meters of leasable space.

Of the total, P245 million will be used to acquire office spaces primarily in Pasig City and Makati City, and P120 million in Davao City within the first half of 2020.

KPPI also plans to invest in short-term liquid investments such as short-term government securities, bank deposits and money market placements, which are expected to earn prevailing market rates. If such investments incur losses, any shortfall will be financed by internally generated funds.

Incorporated in 2005, Kepwealth Property is primarily engaged in the business of investing in, purchasing, or otherwise acquiring and owning  properties including hotels, inns, resorts, apartments, or personal property.

At present, the company owns 77 office condominium units with 98 leasable spaces in Kepwealth Center, a commercial building located at Samar Loop corner Cardinal Rosales Avenue, Cebu Business Park, Cebu City. Upon completing its IPO-funded acquisitions, the company expects to have an estimated 18,121 sqm of leasable space.

This developed as the Securities and Exchange Commission (SEC) approved the planned IPOs of coconut product manufacturer Axelum Resources Corp. and home improvement retailer AllHome Corp.

Axelum Resources and AllHome plan to raise as much as P4.77 billion and P12 billion in fresh capital, respectively.