Globe Asiatique to brave market, files IPO bid

Real estate developer Globe Asiatique Realty Holdings Corp. is seeking to raise fresh funds through an initial public offering next year. If approved by regulators, this may be the first IPO in the country for 2010 and the first major maiden offering in nearly two years following volatile market conditions. Globe Asiatique filed a registration statement at the Securities and Exchange Commission seeking approval to sell up to 305-million new common shares through the Philippine Stock Exchange and raise as much as P1.4 billion. The proceeds will be used to boost the company’s landbank, fund future property developments and settle debts. Globe Asiatique, led by businessman Delfin Lee, plans to list up to 339.16-million shares, through primary and secondary offerings. This will include 168.7-million shares for the overallotment option. The total number of shares is equivalent to 15 percent of the company’s outstanding capital stock of more than 1.136-billion shares immediately after the offer. The company is seeking to list at the PSE’s primary board. Globe Asiatique’s total capital expenditure for next year may reach P3.05 billion. Of the amount, P1.8 billion is for the construction of G.A. Sky Suites, Sameera, Xacera Mabalacat and the expansion of Xevera Bacolo. The company also plans to launch three more projects – New Sta. Rosa Homes, Sameerah and The Courtyard. Meanwhile, P1 billion is for the refinancing of its debts. Higher sales from its projects pushed Globe Asiatique’s earnings in January to September by 40 percent to P300.1 million. Revenues improved four percent to P3.02 billion from P2.9 billion. At end-September, total assets of Globe Asiatique amounted to P7.56 billion, higher than the P6.03 billion a year ago. Land developments and housing construction made a dent to the company’s cash and cash balances, declining to P11.68 million from P19.96 million. The available landbank for future project of the company is 215,188.70 square meters. When the financial fallout began in the late 2007, several companies such as budget airline operator Cebu Air Inc. and entertainment and movie producer Viva Communications, postponed their scheduled IPOs last year. Software developer Ripple E-Business International Inc. was the last company to brave the market. In its offering last September, the company raised net proceeds of some P17 million. San Miguel Brewery’s May 2008 IPO was considered the last major IPO for the PSE, wherein the beer unit of San Miguel Corp. was able to fetch P25 billion in fresh capital - GMANews.TV