Property developer Ovialand Inc. said Wednesday it deferred its planned P2.2-billion initial public offering due to volatility in the local and global markets.
Ovialand said in a statement Wednesday it would “wait for better market conditions” before proceeding with the planned maiden listing.
“Ovialand has always been about creating value for everyone we serve—whether it be our homebuyers, organization, business partners and shareholders. We want our IPO to be a testament to this principle,” said Ovialand president and chief executive Pammy Olivares-Vital.
The decision was made in consultation with SB Capital Investment Corp., the sole underwriter for the IPO.
“We aim to find the most suitable vehicle for our client to achieve growth, and as of the moment, a public listing is not the best option,” SB Capital president and chief executive Virgilio Chua said.
“We will continue to work and support Ovialand so that all options are available to maximize their long-term growth potential,” he said.
Olivares-Vital said despite the deferment of the fund-raising activity, the group remained on track to sustaining its growth momentum in 2023. It will also continue to implement growth strategies and expansion plans to achieve its goal of becoming a nationwide player in the property sector, she said.
Ovialand has been planning to go public since 2021. Such plans were deferred also due to volatile market conditions.
Based on the IPO prospectus filed in March, Ovialand planned to sell up to 360 million primary and secondary shares with an over-allotment option for another 36 million secondary shares at an offer price of P5.60.
Ovialand said it would use the proceeds to fund land-banking initiatives in South Luzon, particularly Laguna and Bulacan. It targets to expand its land bank to 200 hectares over the next five years
It will also spend a portion of the proceeds to develop its pipeline real estate projects in Laguna, Batangas, Quezon and Bulacan.
Ovialand focuses on selling premium affordable house-and-lot units with prices ranging from P1.8 million to P3.2 million.