Mass housing developer Haus Talk Inc. has lifted the curtain on the domestic initial public offering (IPO) phase of 2022, with its pesos 750 million stock selling out on Monday, the first day of the offering.
The company, which is run by the Pampanga Madlambayan family, is introducing a new mass housing investment vehicle to investors focusing on small developments outside of Metro Manila, selling to the public up to 500 million primary shares at 1.50 pesos per share.
“We believe that our offering is che – and, since it is an SME (Small, Medium and Emerging Board) listing, the size is small enough to attract and retain investors over the medium term,” said Terence Madlambayan, Chairman of Haus Talk He said that in a Zoom interview with Inquirer on Monday.
“We also know of an underwriter, Investment and C -ital Corp. of the Philippines (ICCP) that the QIB tranche (Qualified Investor Buyer or Institutional) of the offer is being heavily used. Essentially everything [shares] are already engaged, ”he added.
ICCP managing director Manny Ocampo added that the offer would likely be “significantly oversubscribed” by the end of this week. “We’re just getting started and we’re completely sold out,” he said.
Asked on the 1.50p per share valuation basis, Ocampo said that since it would take about a year to execute on IPO proceeds, this stock deal would likely have a significant impact on valuation through 2023.
“A lot of the funds are going to new projects and these new projects won’t really get underway until the end of 2022-2023. So until 2023, at 1.50 p. ” [price per share] will only be about 12 times [price to earnings]”Said Ocampo. “It’s very low.”
The valuation could be a bit high for this year at around 15 to 16 times projected earnings, but Ocampo says there are comparable companies here right now.
Haus Talk could provide 200 to 250 housing units a year even during a pandemic, said company president Maria Rachel Madlambayan, but once the pandemic’s restrictions are over, production would grow exponentially.
The company caters to local end users, mostly working class families, who need housing units ranging from as little as P750,000 for public housing to up to P4 million for affordable housing.
When asked what sets Haus Talk -art from other developers targeting the same consumer segments, Rachel Madlambayan said, “I think it’s the quality because we source our own materials. Every corner of the construction is processed by us. That’s why we don’t outsource our production. We have our internal team, so we know very well from the procurement of the materials that they are all within the standards. “
The preliminary listing on the Philippine Stock Exchange is on January 17th. This stock deal gives the company a market c -italization of around 3.75 billion pesos.
Proceeds from the offering, which runs through Jan. 7, will increase funding for land banking, project development, and other expansion programs for the company. Haus Talk plans to acquire land in Bacoor, Dagupan, Sta. Cruz and Antipolo.
To date, Haus Talk has 10 developments. It has four ongoing projects at different stages of development. In addition, there are three newly launched projects in land development and in advance sales.
In 2020 Haus Talk had a net profit of 50.403 million pesos on sales of 284.72 million pesos. INQ
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