Town mall developer eyes P1.2 B from IPO

MANILA, Philippines – Town mall developer Philippine Primark Properties Inc., formerly known as LKY Group, is planning an initial public offering (IPO) at the stock exchange, unfazed by the prevailing market volatility.

In documents filed with the Securities and Exchange Commission (SEC), Primark said it hopes to raise P1.2 billion from the sale of 704,460,000 primary shares with a par value of 25 centavos per share. The offer price is up to P1.70 per share.

Proceeds would be used to roll out more town centers in various parts of the country.

“The company intends to use the net proceeds for the construction of town centers in advanced stage of business development cycle, budget allocation for other future locations and general working capital purposes,” Primark said in its registration statement.

It targets to offer the shares from Nov. 16 to 20, with a tentative book building period from Nov. 9 to 13. The target listing date is Nov. 30.

Bulk of the IPO proceeds, at P866 million, would be used to fund seven town centers in advanced stages of development. These include town malls in Paliparan, Cavite (10,371 square meters); Cauayan, Isabela (8,536 sqm); Arayat, Pampanga (6,125 sqm); Binmaley, Pangasinan (3,541 sqm); Antipolo, Rizal (3,129 sqm); Teresa, Rizal (2,883 sqm); and Muñoz, Nueva Ecija, (5,423 sqm).

The company was incorporated on Aug. 7, 1996 as LKY Prime Builders, Inc. to primarily engage in general construction and other allied businesses. Primark is part of a larger group of companies engaged in real estate development, construction, hotel operations, terminal operations and dry goods retail.

In April 2015, the SEC approved the change in name from LKY Prime Builders Inc. to Philippine Primark Properties Inc. and on Sept. 14, the amendment to its primary purpose to allow the company the business of constructing, building, developing, operating and maintaining commercial buildings shopping centers or malls and other real estate developments.