Vista Land to raise P25 billion from initial public offering

REPORT FROM BUSINESSWORLD Newly formed holding firm Vista Land & Lifescapes, Inc. is planning to raise about P25 billion from an initial public offering (IPO) set for June 25. Documents submitted to the Securities and Exchange Commission showed the company is selling a total of 2.5 billion shares at P10 apiece through listing at the Philippine Stock Exchange. Vista Land & Lifescapes, Inc., the new holding firm of the MB Villar Group, includes listed C&P Homes, Brittany Corp., Crown Asia, and Communities Philippines. The primary offering to local and foreign investors will help the company raise capital for expansion, it said in a statement. "With the proceeds, Vista Land will be able to expand its operations in the regions to double its geographic reach in the next two years. It also seeks to expand its role in inner city and vertical developments while enhancing existing projects by putting up community centers and establishing business process outsourcing in those projects," it said. Switzerland-based UBS Investment Bank was named as sole global coordinator and book-runner with ABN Amro Roths-child as co-lead manager. Vista Land said Brittany Corp. will cater to high-end customers while Crown Asia is meant for the middle market. Camella will focus on low-cost housing while Communities Philippines will help bring the three different brands outside Mega Manila — Metro Manila and neighboring provinces of Cavite, Laguna, Rizal, Batangas and Bulacan. It said it has an extensive land bank for future developments, including 1,434 hectares of raw land, of which about 1,185 hectares were acquired directly and about 249 hectares under joint-venture agreements with land owners. The company said it also intends to expand into more leisure projects and other types of real estate development. During the first three months of 2007 the company posted a net income of P1.52 billion on consolidated revenues of P3.66 billion. The Philippine Stock Exchange on Tuesday suspended the trading of shares of C&P Homes until its delisting from the official registry of the exchange on June 25. The suspension will be lifted on June 22 only to allow the cross-sale of C&P shares acquired by Vista Land as a result of the tender offer. As this developed, C&P Homes said it will list 749.15 million additional common shares with par value of P1 per share today to cover debt-to-equity conversions. — Bernardette S. Sto. Domingo/BusinessWorld