Vista Land sets price of P21.2-B follow-on offer at P6.85/share

Vista Land & Lifescapes Inc. has set a final price of P6.85 per share for its follow-on offering of up to 3.1-billion common shares.

The issue is expected to raise P21.235 billion in proceeds.

Vista Land, however, said that since the domestic issue is a secondary offering, investors will have to pay P6.8533 per share, inclusive of the costs and expenses related to the purchase of shares through the Philippine Stock Exchange.

Based on its prospectus filed with securities regulators, Vista Land will sell 70 percent of the total offer shares, or up to 2.17 billion common shares, in the international market.

The remaining 30 percent or 931.8 million shares, will be issued to local investors.

The shares will be listed at the exchange on July 26.

The offered shares, including the secondary offer and the greenshoe option, is equivalent to 45.8 percent of Vista Land’s post-offering capital.

Switzerland-based UBS Investment Bank was tapped as the sole global coordinator and bookrunner for the issue with ABN Amro Rothschild as co-lead manager while BDO Capital and Investment Corp. will be the lead domestic underwriter.

Proceeds from the offering will be used to fund capital expenditures amounting to P7.17 billion and working capital requirements of P800 million, as well as settle loans worth P5.21 billion.

The budget will allow Vista Land to rapidly expand its operations and strengthen its market position. It intends to expand its housing operations in the provinces in a bid to double its geographic reach in the next two years.

The company is also seeking to expand its role in inner city and vertical developments with an initial P10 billion investment, while enhancing existing projects by putting up community centers and establishing business process outsourcing (BPO) sites.

The firm has an extensive land bank available for future development: 1,434 hectares of raw land, of which approximately 1,185 hectares were acquired directly and about 249 hectares under joint venture agreements with land owners.

The formation of Vista Land joins together Brittany Corp., C&P Homes, Crown Asia and Communities Philippines, which are all market leaders in their respective segments, making Vista Land the largest homebuilder in the Philippines offering a full spectrum of horizontal residential products across all income segments.

The consolidation also makes Vista Land the homebuilder with the widest geographical reach in the country.