8990 Holdings cuts share price

MANILA, Philippines - Mass housing developer 8990 Holdings Inc. nearly halved the selling price for its planned public share sale.

8990 Holdings said it intends to raise P9 billion by selling shares at P6.50 apiece through a follow-on offering.

“The offering was priced at the very top of the P5.50 to P6.50 price range, with participation from a large number of institutional accounts,” 8990 Holdings said.

Proceeds from the P9-billion fundraising program will support the real estate company’s landbanking and project development projects.

In January, the Securities and Exchange Commission allowed the property firm to sell shares at a maximum offer price of P12.70 for a total transaction value of P15.74 billion.

8990 Holdings benefited from the strong level of interest from the global investor community, said company president and CEO Jesus Atencio.

For only the second time ever in the Philippines, a formal cornerstone tranche was executed where two global long-term institutional investors, Khazanah Nasional Berhad and TPG Capital Pte. Ltd., committed to invest a total of P2.9 billion during the bookbuilding process.

“We are thrilled to participate with 8990 Holdings, the largest home builder in the Philippines, as they address an important need in the country with very attractive and affordable housing,” said TPG Asia managing partner Tim Dattels.

The entry of Khazanah and TPG is a “testament of the world’s excitement in the Philippines as an investment destination,” Atencio said.

The transaction, which marked Khazanah’s first foray into the Philippines, will allow Malaysia’s strategic investment fund to gain an exposure in the Philippines’ growth story while securing a potential avenue “to foster know-how sharing that could benefit affordable housing development in Malaysia and more broadly in the region.”