MANILA, Philippines - Water utility firm Calapan Ventures Inc. (CVI) has opened its doors for small investors to become shareholders of the company through its initial public offering (IPO) set on Nov. 24, this year.
“The maximum share price is only P2.50 and the minimum subscription is 1,000 shares. With only P2,500, they can become stakeholders of the company. We wish to promote greater public participation,” Ortrud Ting-Yao, Calapan Ventures Inc. chief finance officer, said.
Yao assured investors their money will be placed in useful endeavors that will have positive social impact and relevance as the proceeds from the IPO will fund the company’s rehabilitation and expansion programs.
The company currently services 8,613 households in 32 barangays in Calapan City. At present, it also has an O&M (operation and management) contract with the local government of Tabuk, up north in Kalinga.
The company will offer as much as 42.161 million in common shares, with Unicapital, Inc. serving as its underwriter.
Yao said investors have their money secured because the company holds a 25-year franchise in Calapan, which is one of the 10 fastest growing cities in the country, and a 25-year management contract in Tabuk. These long-term contracts provide stability and insulate the firm from competition within its service areas.
“We have a very stable revenue stream. We are providing clean water, which is a necessity,” Yao said, adding that although Calapan Ventures is currently a small player, its decision to go public via the IPO will allow the company to grow faster.
Calapan Ventures Inc. is a wholly-owned subsidiary of Jolliville Holdings Corp. Jolliville Holdings Corp. has business interests in leasing, property development and land banking, management consulting, water utility and most recently, power generation.
For inquiries, call Pam Victoriano of Unicapital Inc. at 8920991, or send email to pqv@unicapital-inc.com, or visit www.h2o.ph.