Golden Haven Memorial Park Inc. (HVN), the first initial public offering on the Philippine Stock Exchange this year, surprised the market on its listing day by keeping to an uptrend.
HVN closed at P15.74 per share on Wednesday, up 49.90 percent from its IPO price of P10.50. It opened at P11 apiece.
The company raised P778 million from the IPO, which will be used to fund its land acquisition, land development, construction and completion of Las Piñas chapel and crematorium and for general corporate purposes.
“The fresh capital raised will help us with our strategy of having a 'Park In Every Hometown,' targeting to achieve our vision of becoming the nationally-recognized brand in the deathcare products and services industry, providing premier private memorial parks and services to all Filipinos," said Golden Haven chairman Jerry M. Navarrete.
HVN was trading at P14.30 apiece as of 10:59 a.m. – up P3.80 or 36.19 percent from its IPO price.
"The first IPO of the year has been well received today based on the price and trading volume and with good reason, said Luis Limlingan, business development head at Regina Capital Development Corp.
"Golden Haven is the leading developer of memorial parks in the country, in terms of projects development and its 30 years of operations," Limlingan noted.
"Regina Capital is surprised that we have come to see such an unusual business to finally come to the exchange. To be honest, the business of the dead is as constant as taxes and traffic, so it is no surprise that the industry is stable and profitable," Limlingan said.
"Low supply due to low free float pushed the demand higher and pushed HVN's price higher," Alexander Tiu, senior equity analyst at AB Capital Securities Inc., said in a separate text message.
“Today, Golden Haven marks another milestone as the first memorial park or death care business to list on the PSE’s main board," PSE Chairman Jose T. Pardo said in his welcome remarks during the listing ceremony.
"The utmost concern and care we provide for our dearly departed are unique values Filipinos continue to uphold. A good memorial park and death care provider allows us to continue this tradition,” he added.
Roel Refran, COO of PSE, told the GMA News Online that the strong showing of HVN on its maiden day of trading bodes well for the upcoming IPOs for the remainder of the year. – VDS/KBK, GMA News