Mass housing developer 8990 Holdings Inc. has deferred plans to conduct a P26.6-billion share sale due to current market volatility.
8990 Holdings said in a disclosure to the stock exchange Monday it submitted a notice of withdrawal with Securities and Exchange Commission (SEC) on the planned sale of 1.25 billion in common shares with an over allotment of up to 250 million shares to be sold at a price of up to P18.99 apiece.
The company said it is “very challenging” to conduct a share sale because of the current market volatility and the economic uncertainties amid the pandemic and increasing inflationary pressures.
The bellwether Philippine Stock Exchange Index stood at 7,252.64 when the company filed its registration statement with the SEC to conduct the share sale. The index since dropped significantly to 6,361.82 on Friday.
The company’s share price also fell from its 52-week high of P14 in February to P10.30 on Friday.
“The company and selling shareholders are continuing to seek guidance from their financial advisors in relation to when circumstances are more favorable to re-file the Registration Statement,” the housing developer said.
The planned share sale was supposed to be an exit mechanism for 8990 Holdings’ cornerstone investors—TPG Rafter Holdings Ltd. and Pasir Salak Investments Limited.
TPG Rafter and Pasir Salak have been investors of 8990 Holdings since 2004 when the mass housing developer conducted a follow on-offering.
TPG Rafter is one of the world’s largest private equity firms while Pasir Salak is a special purpose vehicle of Malaysia’s state investor Khazanah Nasional Berhad. They own 8.61 percent each in 8990 Holdings.
8990 Holdings said TPG and Pasik Salak would continue to support and remain shareholders until such time the market conditions improve.
The company hired BofA Securities and JP Morgan as the joint global coordinators and book runners of the offering, and China Bank Capital and PNB Capital and Investments Corp. as joint domestic leader underwriters and book runners.
Fresh meat supplier North Star Meats Merchants Inc. last month shelved its P4.5-billion initial public offering on heightened market volatility as a result of the surging inflation rate.