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Stock Commentary

Haus Talk receives PSE approval for January 17 IPO

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Haus Talk receives PSE approval for January 17 IPO

Haus Talk [HTI 1.50 pre-IPO], the residential real estate developer owned by the Madlambayan Family, filed for a November IPO but was just approved by the PSE for a January 17th IPO. Nothing about the offer appears to have changed: HTI still plans to sell 500 million common shares at up to P1.50 per share, for an estimated post-transaction public float of 26%.

This would give HTI a post-money marketcap of approximately P3.8 billion. HTi plans to use the majority of the proceeds (64%) on land acquisition for future projects, with 30% going to existing project development, and a small remainder to general working capital. Disbursement of proceeds for land acquisition is planned between 2022 and 2024.

MB BOTTOM-LINE

HTI is another developer in the same vein as Ovialand, in that it offers affordable housing options that buyers can pay for using the Pag-Ibig Fund (or traditional banks loans, or HTI’s own internal financing which is priced “at a premium” to banks). I’m a huge fan of getting more of these niche property developers as investing options in the PSE. That’s not an endorsement of HTI specifically, but it is my opinion that the segment of buyers targeted by Ovialand and HTI is one that presents an amazing opportunity to the companies that can execute successfully, consistently, and repeatedly, over the next 5-10 years.

Two low-priority points: (1) it looks like HTI’s November IPO hopes were dashed by the PSE’s reluctance to allow multiple IPOs in the same period. I’ve heard many rumors about the PSE pushing ready-to-go IPOs off into later periods under some concern for an over-saturation of equity-raising events; and (2) as a fan of entertaining ticker symbols, “HTI” has to be one of the weakest that I’ve seen, especially considering that at least one person probably said “what about HAUS, that seems pretty great” and then maybe that person was shouted out of the room. Why not just call it HAUS?

 

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

HAUS TALK INC.

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