Ovialand sets aside IPO plans to focus on growth

MANILA, Philippines — Olivares family-led property developer Ovialand Inc. is setting aside for now its public listing plans as the company sets its sights primarily on growth.

“The listing is not the goal. The goal is to expand. There are other ways for us to expand and grow. The goal is to keep on growing our production capacity,” Ovialand president and CEO Pammy Olivares-Vital said.

Ovialand has experienced a double-digit growth in revenue and income in the first half.

She said the company is on track for sustained significant growth in the coming years.

“We approached the first half with an aggressive stance. We knew it was going to be an uphill battle given all these global conditions. That said, it was rewarding,” Olivares-Vital said.

On doing an initial public offering (IPO), Olivares-Vital said the company would take the cue from the country’s tycoons before pursuing its previously planned public listing.

She said the company is open to reviving its deferred IPO, but only after high-profile IPOs take place.

“Once the larger IPOs happen, SM and one of Ricky Razon’s, those will be the signal for us that the foreign funds are already open,” she said.

Olivares-Vital is referring to the highly anticipated IPOs of Razon’s Prime Infrastructure and SM Prime’s real estate investment trust.

“The success of their raise will be an indicator for smaller companies like us that foreign funds are back and open,” she said.

Ovialand last year filed for a P2.2-billion IPO. However, the company decided to defer its planned maiden listing amid volatility in local and global markets.

“When the time comes (for the IPO) definitely it will be a much higher valuation because the company has grown the past two years so we’ll definitely reflect that,” Olivares-Vital said.

Olivares-Vital said the company is currently trying to find a private equity fund for its funding requirements.

“We are looking really for a partner that will be fit with us, shares the same values and shares the same growth plans that we have,” she said.

Earlier this year, Ovialand unveiled its partnership with listed Tokyo-headquartered Takara Leben.

The partnership’s first residential joint venture, a 6.5-hectare development in Laguna, is expected to generate P1.97 billion in sales over four years.

“We are in the final stages of opening our second development with them,” Olivares-Vital said.