Alphaland sets follow on share sale in October

MANILA, Philippines - Upscale property firm Alphaland Corp., a joint venture between London-based private equity fund Ashmore Group and RVO Capital Ventures Group of former Trade Minister Roberto V. Ongpin, will conduct a follow-on offering of its shares in October, a top company executive said.

This will allow the company to comply with the minimum public ownership requirement of the Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC), Alphaland president Mario Oreta said in an interview.

“We will do a follow-on offering maybe in October in order to comply with the SEC regulation of 10 percent public float,” he said.

The company can even breach the required 10-percent float depending on its final decision prior to the share sale, Oreta said.

The corporate regulator and the PSE require a 10-percent minimum public float for all listed firms. The grace period is until end-2012, with erring firms to be slapped with monetary penalties and even delisting.

Oreta said Alphaland is looking at a public share sale or a private placement.

“We are in the process of talking to some investors,” he said.

In March last year, Alphaland secured board approval for a follow-on offering of shares in the third quarter of 2011 to boost its public float.

Meanwhile, the company is keeping its hands busy with ongoing high-end projects.

Oreta said the company is on track to spending all P5 billion it allotted this year.

“We will be spending a lot of our money on Alphaland Tower, Makati Place and Balesin Island Club. Also this year we are starting the Bay City,” Oreta said.

“What we want to do is develop high-end projects for our own clientele,” he said.

Last year, Alphaland earmarked at least P16 billion until 2014 for its real estate projects.

“We will finish three projects this year: the Alphaland Tower, Makati Place and Balesin,” Oreta said.

The 34-story Alphaland Tower will offer prime office space while the two-tower Makati Place will cater to residential and hotel needs of clients. Alphaland is also completing the 500-hectare Balesin Island Club in Quezon province.