Primex Corp to issue IPO for 33.5% stake

Mid-sized real estate developer Primex Corp. will bid to become the first initial public offering (IPO) issue this year as its application was given the go-signal by the Securities and Exchange Commission (SEC).

The company plans to offer for sale to the public 67 million of its common shares representing 33.5 percent of issued and outstanding common stock. First Metro Investment Corp. will act as lead underwriter for the offering.

The shares, with a par value of P1, will be priced at between P1.80 to P2.20 each, with the maximum net proceeds of P138.205 million accruing directly to the selling shareholders, who will then channel these funds for the company’s expansion projects.

Primex, established in 1986, engages in almost all aspects of the real estate business such as raw land acquisition, development, marketing, contract processing and signing, collecting and titling.

It has completed two projects: the Goldendale Village in Malabon and Richdale in Antipolo, Rizal. One other project, Goldendale II, also in Malabon, is almost 95 percent complete.

Primarily owned by the Ang family, the company is affiliated with Primex Land Inc., Primex Domain Inc., Omega Lumber Corp., Primex Realty Corp. and Primex Development Corp.

The closely-held family corporation is reflected in the company’s management, with Ernesto O. Ang as chairman and president; Eduardo O. Ang as director and VP; Emilio O. Ang as director and VP; Edgard O. Ang as director and treasurer; and Ericson O. Ang as director and EVP for legal.

Last year, Primex earned almost P7.5 million from its operations, although this was down from P8.8 million in 1999.

Primex’s IPO application is also set to be finalized for listing at the Philippine Stock Exchange (PSE) along with that of another IPO candidate – SQL Wizard Inc.

Earlier, thrift bank Citystate Savings Bank also applied for an IPO to raise as much as P128 million for its expansion.

CSB said it plans to offer 11.1 million new common shares priced between P10.25 to P11.55 each to be listed and traded at the second board of the Philippine Stock Exchange. The IPO will be lead managed and underwritten by Abacus Capital & Investment Corp.

The offer shares will represent 25.17 percent of the bank’s issued and capital outstanding capital stock of 44.1 million common shares, with a par value of P10 per share.