Housing developer 8990 sets P9-B equity offer at P6.50/share

MANILA, Philippines

8990housing.com

—Local mass housing developer 8990 Holdings Inc. has priced a follow-on equity offering at P6.50 per share, allowing the company to raise about P9 billion from this equity deal.

In a press statement, 8990 said the $204 million equity deal had attracted “overwhelming” demand from the global investors, allowing the offering to be priced at the top of the P5.50 to P6.50 indicative price range. Strong participation was noted from a large number of institutional accounts.

For only the second time in the Philippines, a formal cornerstone tranche was executed in which two global long-term institutional investors — Khazanah Nasional Berhad (Khazanah) and TPG Capital (S) Pte. Ltd. (TPG) — committed to subscribe and were allocated over P2.9 billion worth of shares each at the top end of price range prior to launch of the bookbuilding exercise.

This is the first investment of both Khazanah and TPG in the Philippines.

The retail offering runs from May 2 to May 8 this year. The equity offer consists of 1.24 billion common shares of which 862.19 million are primary shares and up to 382.36 million are secondary shares. There is an overallotment option amounting to 134.95 million shares.

“We are extremely pleased with the strong level of interest that we have received from the global investor community, and we welcome them as our shareholders,” said 8990 president and chief executive officer Januario Jesus Gregorio III Atencio said.

“The entry of Khazanah & TPG into the company is not only a cornerstone for us, but a great milestone for the Philippine equities as well. This is further testament of the world’s excitement in the Philippines as an investment destination. A warm welcome to the Philippines, Khazanah & TPG,” he added.

Tim Dattels, Managing Partner, TPG Asia, said: “We are thrilled to participate with 8990, the largest home builder in the Philippines, as they address an important need in the country with very attractive and affordable housing.”

UBS AG acted as sole global coordinator, sole international bookrunner and joint domestic lead underwriter and SB Capital Investments Corp. acted as joint domestic lead underwriter.

8990 backdoor-listed on the local stock exchange through IP Converge Data Center and now trades under the ticker “HOUSE.” It is a leading mass housing developer in the Philippines, having sold over 26,000 units since 2003, with about 13,000 additional units available for development and sale from ongoing projects. The company, through its “DECA Homes” and “Urban DECA Homes” brands, seeks to provide quality and affordable homes to consumers.

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