SEC okays Globe Asiatique IPO

MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the planned initial public offering (IPO) of low-cost housing developer Globe Asiatique Realty Holdings Corp. which is seen to raise up to P3.05 billion in fresh capital.

Based on its registration statement filed with the SEC, Globe Asiatique will issue 136.36 million shares through a primary offering, with an overallotment option of up to 168.7 million shares, at a price ranging from P6.50 to P10 apiece. The shares to be offered account for 15-26 percent of the issued and outstanding capital of the company.

The company is also selling 34.09 million shares through a secondary offering.

Established in November 1994, Globe Asiatique has a solid track record in the development of low-cost to middle-income housing projects and has produced and delivered over 13,400 housing units in nine completed projects mainly under its Xevera brand.

BDO Capital & Investment Corp. has been tapped as issue manager and lead underwriter for the offering.

Proceeds from the IPO will be used to fund the construction of GA. Sky Suites and Corporate Tower in Quezon Ave. — soon to rise as the tallest building along EDSA — and several residential subdivisions, as well as pay down bank loans.

Globe Asiatique said it is in the process of developing another brand, Sameera which shall offer housing units at an even lower price range than its Xevera brand, as it expects the demand for low-cost housing to be undersupplied for the next two years. 

The firm has also lined up housing projects in Bacolod, Subic, Mindoro and Angeles City, Pampanga to take advantage of the estimated shortage of 3.8 million housing units in the country, primarily in the socialized and low-cost category.

Globe Asiatique has been working with the state-run Home Development Mutual Fund or Pag-Ibig Fund to provide end-user financing options to company’s clients. 

Last year, Globe Asiatique posted a record net income of P502 million, on 82-percent increase from P275 million reported in 2008, on the back of higher sales from new and ongoing projects.

Gross profit on real estate sales rase 35 percent to P1.5 billion as ralized revenues from real estate increased by P322 million, anchored on the heavy take-up of units in Xevera Mabalacat and Chateau Valenzuela, couple with the completion of the initial phase of Xevera Bacolor.

Last year, Globe Asiatique sold 11 percent more residential units across all projects, or a total of 5,384 units worth P4.1 billion.