Italpinas Development [IDC 1.45, down 2.0%; 491% avgVol] [link] was halted on Tuesday after the company revealed its board had approved a private placement with Benjamin Tan Co for ~94.4 million common shares for a total subscription price of P187,926,285 (P1.99/share). After the one-hour halt was lifted, IDC surged up nearly 10% but settled back to close up 6.5% at P1.48/share. In yesterday’s session, however, the stock traded down as low as P1.40/share on heavy volume and closed down just over 2% at P1.45/share. IDC is a real estate development company with a minority stake in a renewable energy firm.
MB bottom-line: The private placement was to a person who is framed as a “strategic investor” with (according to Philstar) “a broad portfolio of interests including petrochemicals, steel manufacturing, as well as PVC resins and products, among others.” Philstar also points out that the Co Family has a “portfolio of land holdings throughout the country, including Palawan, Cavite, Boracay, Pampanga, Quezon province, and Quezon City.” The statement from IDC’s CEO about how there could be “synergy” to “unlock its full potential in becoming the leading developer of sustainable properties in the country” makes me think the Co Family has found the group that will develop its landbank. Will the group lean more toward the hot tourism/hospitality market? If so, that’s interesting. IDC has been something of a laggard, but maybe it’s primed for a pivot.
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