Ovialand defers IPO as markets remain volatile

MANILA, Philippines — Ovialand Inc. deferred its debut in the Philippine Stock Exchange, citing less-than-ideal market conditions here and abroad.

In a statement on Wednesday, Ovialand said they will instead wait for market conditions to turn greener before it goes public.

The real estate firm, owned by the Olivares family, filed for a P2.2 billion initial public offering with the Securities and Exchange Commission of 1.2 billion common shares on March 24.

“Ovialand has always been about creating value for everyone we serve — whether it be our homebuyers, organization, business partners, and shareholders. We want our IPO to be a testament to this principle,” said Pammy Olivares-Vital, president and CEO of Ovialand.

The statement underscored that the deferral was decided alongside SB Capital Investment Corp, the IPO’s sole underwriter. 

Markets at home and abroad are at a standstill of sorts, as headwinds, characterized by expectations of an economic recession in developed economies and geopolitical conflicts, left conditions in familiar territory. As it is, equities everywhere are still recovering from the damage left by the pandemic on the global economy.

So far, two companies have gone public in the local bourse this year. Tech retailer Upson International Corp. and renewables firm Alternergy Holdings Corp. have led the way, as the PSE is targeting 14 IPO in 2023. 

The local bourse is eyeing to raise P160 billion from these equity deals. 

That said, Ovialand’s filing with SEC in March laid out details in its IPO, which include putting up 336 million primary common shares and up to 24 million secondary common shares for sales.  

The offering has an over-allotment option of up to 36 million secondary common shares. 

Proceeds from the deferred IPO were intended for Ovialand’s land banking initiatives in Laguna and Bulacan, among others. 

Aside from that, Ovialand was keen on cultivating a pipeline of real estate projects located in Batangas, Quezon, and Bulacan. Some of the proceeds will also be used for other general corporate purposes.