Calapan Ventures sets P105-M primary offer

MANILA, Philippines - Emerging utilities player Calapan Ventures, Inc. plans to expand and has set a P105-million target in its primary offering exercise by Nov. 24.

Calapan Ventures chairman Jolly L. Ting said the company is looking at improving the service in their area as much as it would like to do offshore contracts with other local government units in the country through it three wholly-owned subsidiaries – Calapan Waterworks Corp., Kristal Water Source Corp. and Tabuk Water Corp.

“We are looking at replacing the old distribution pipes with new ones and reducing the non-revenue water from 36 percent to about 20 percent in 2012. We are also trying to reach areas in Calapan where there is no piped-in water yet,” Ting told reporters in an interview over the weekend.

The water utility firm has an ongoing rehabilitation, expansion and improvement plans to accommodate more subscribers and expand the coverage of service to the other barangays that are currently not being served.

The company is planning to expand storage facilities, in particular the construction of an overhead reservoir, and the installation of transmission and distribution lines from the reservoir to the water system. It is also planning to spend the bigger chunk of the proceeds on zoning works in 26 barangays for installation of district meters and isolation valves.

   The company is servicing 8,613 households in 32 barangays in Calapan. At present, it has an O&M contract (operation and management) with the local government of Tabuk, up north in Kalinga.

On the other hand, Krystal Water is programmed to construct and operate an ice plant facility in Barangay Bayanan I, Calapan City. The plant is expected to be operational by the second half of 2011. It is expected to produce around 5,800 metric tons of tube ice yearly.

Vice president for finance Ortrud T. Yao said that the company will be offering as much as 42.161 million in common shares at P2.50 per share. Unicapital, Inc. served as Company underwriter.

Calapan Ventures has, so far, spent P360 million for the acquisition of a water plant of which P80 million was equity and P260 million was a credit facility with the Development Academy of the Philippines.

Yao said the company will be creating a master plan for a sewerage system for Calapan, “once we’re done with primary offering.”

The company is currently finishing three feasibility studies on water supply for two towns in Mindoro and another in Agoo, La Union.

“We’re doing the feasibility studies for free hoping that they will consider our services once they decided to implement their respective water projects,” said Ting.

Calapan Ventures is a wholly-owed subsidiary of mother company Jolliville Corp.

Jolliville Holdings Corp. (JOH) was originally incorporated by the Ting family in September 1986 as Jolliville Realty and Development Co. Inc., a realty company. Its affiliates Jolliville Group Management, Inc., Jollideal Marketing Corp., Ormina Realty and Development Corp., Jolliville Leisure and Resort Corp., and Ormin Holdings Corp. have principal business interests in leasing, management services, property development and land banking, and a local waterworks system. 

Jolliville also owns a number of properties in Metro Manila, Calapan City and Puerto Galera in Oriental Mindoro. These property investments, which include parcels of urban land, provincial and beachfront properties, as well as condominium units, are held for future operations and/or development.