MANILA, Philippines - Construction firm Datem Inc. is still keen on pursuing its P4.6 billion initial public offering despite the prevailing market volatility, its top official said.
“Datem is still continuing to make the necessary preparations to prepare for the IPO listing. We’ll be sure to provide updates on any developments,” company president Levi Espiritu said.
Last month, Datem formally filed with the Securities and Exchange (SEC) its IPO application involving up to 329. 05 million shares with a maximum offer price of P14.15 apiece.
About 42.92 million shares have been set aside for the green-shoe option in case of strong demand.
Proceeds from the share sale would be used to fund expansion activities in construction, housing and bulk water, Espiritu said.
“The company is geared for bullish growth in the construction industry and in its subsidiary businesses,” he said.
He said the company has over 30 years of experience and has successfully established itself as a reliable and reputable construction firm with a wide range of residential and commercial projects for various clients.
Datem’s projects include Discovery Primea, a luxury residential tower in Makati; Discovery Shores in Boracay and the Mind Museum, the Philippines’ first world-class science museum and a LEED Gold-certified building for design and construction.
Just recently, the company made its foray into the housing sector through Datem Home, which is focused on the delivery of well-planned communities and top quality affordable homes. It has projects in Rizal and Davao.
Datem has also ventured in bulk water supply and wastewater treatment services though Datem Water, Inc. At present, Datem Water has a 15-year bulk water supply contract with Metro Kalibo Water District.
Espiritu said the company’s strategy is to take advantage of strong market position and technological expertise.
Bpi Capital Corp. and First Metro Investment Corp. have been appointed as joint issue coordinators, lead underwriters and bookrunners for the offer.
Target listing of the company’s shares with the PSE is by the end of November this year.
Some companies, on the other hand, have deferred their listing plans due to the ongoing market slump owing to investor concerns on the Chinese economy and the equities market.
Apart from Datem, the two other firms that have signified their intention to go public include D.M. Wenceslao and the Metro Retail Group.