Vol. XXI, No. 134
Thursday, February 07, 2008 | MANILA, PHILIPPINES
REAL ESTATE developer Sta. Lucia Land, Inc. is looking to raise between P3 billion to P5 billion in proceeds through the stock exchange this year.
The planned shares offering was supposed to have been conducted last year, after the property developer listed through the backdoor by purchasing the assets of dormant listed firm Zipporah Realty Holdings, Inc. in October.
Plans were, however, moved to the first quarter of this year, and then to a later date after the local bourse got affected by fears that the US would go into a recession.
"The market does not seem attractive so we’ll hold it first. Timing is important," Exequiel D. Robles, president and chief executive officer of Sta. Lucia Realty and Development, Inc., said on the sidelines of the awarding ceremony of Ernst & Young’s Entrepreneur of the Year.
Sta. Lucia Realty owns 20.9% stake in Zipporah, which is now called Sta. Lucia Land, Inc.
Mr. Robles also told BusinessWorld the company has tapped Asian Alliance Investment Corp. and Macquarie Securities (Phils.), Inc. as lead underwriters for the domestic and international offering.
But he did not disclose how many shares would be offered, saying this had yet to be discussed by the company’s board of directors.
Mr. Robles said the proceeds of the offering would be used to expand ongoing residential subdivision and condominium projects in Cebu, Iloilo, Davao, Bacolod and Manila.
Sta. Lucia Land took Zipporah’s spot when parent Sta. Lucia Realty agreed to partially settle the latter’s debts worth P40.722 million.
A change in the stock symbol to SLI from ZIP also reflected Sta. Lucia Realty’s entry.
Under the agreement, Sta. Lucia Realty would initially shoulder P61.070 million and another P43.479 million as the second tranch of payment.
Trading of the erstwhile Zipporah shares resumed in October after the company’s board approved the change in corporate name and the primary purpose to property development.
Sta. Lucia Land had sought the Securities and Exchange Commission’s approval for an increase in its capital stock to P16 billion from P2 billion to allow Sta. Lucia Realty to subscribe to P10 billion worth of shares.
Starting as a residential developer, Sta. Lucia Realty has expanded to mall and golf course developments. It owns Sta. Lucia East Grand Mall and Orchard Golf and Country Club in Cavite. — Lovely Nica P. Lee
[ Published by : BusinessWorld Online ] February 7, 2008
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