Italpinas Development Corporation: The Stock Market Journey

Photo from Italpinas Facebook page

We all know Italpinas Development Corporation (IDC) as the company behind Cagayan de Oro’s green development projects, Primavera Residences and Primavera City. We have witnessed the growth of their projects in the city’s uptown district and are aware of their dedication and commitment to sustainable development. But what do we know about the company’s journey in the world of investments and stocks?

Last year, IDC officially opened their stocks to the public, thereby launching into another phase of the company’s growth. If you’ve taken interest in the company’s activities for one reason or another, then you’d likely find it interesting to know how they’re faring in the stock market thus far.

Stock Market Highlights

Here is a quick glance at the stock market of IDC so far:

  • May 2015 IDC submitted a filing to the Securities and Exchange Commission (SEC) where they indicated their intention of offering over 57 million primary common shares to the general public. The shares were priced at a maximum of PHP 4.20 each.
  • The offer period and listing date for IDC shares was moved a few times. The offer period was originally set for July 2731, 2015 and the listing date was set for August 10. In August, however, the company announced that the offer period has been moved to September 28October 2 and the listing date moved to October 12. The offer period was moved a second time to November 3-9 and the listing date to November 16. The final schedule was set for November 2327 offer period and December 7 listing date.
  • An amended prospectus was filed with the SEC on August 28, 2015.
  • October 2015 The SEC approved IDCs plan to undertake the initial public offering (IPO) worth PHP 242 million.
  • November 2015 IDC announced a final price for their maiden share sale that’s 14% lower than the originally announced maximum price of PHP 4.20 per share. The final price was pegged at PHP 3.60 per share. On November 11, the Philippine Stock Exchange (PSE) approved IDCs first-time share sale along with two other companies.
  • December 2015 On its inaugural trading at the small, medium, and emerging board of the PSE, IDC opened at PHP 5.40 per share, which is 50% higher than their IPO price of PHP 3.60. Afterwards, the company gave up some of their gains and closed at PHP 4.22 per share, still considerably higher than their IPO price. As a result, IDC gained a PHP 797.83 million market capitalization.
  • March 2016 IDC disclosed to the PSE that it has already paid the reservation fee and a partial down payment for a parcel of land that is to be the site for Primavera City, the project that was pegged from the start as the beneficiary of part of the proceeds of the IPO. A capital expenditure of PHP 120.68 million was allocated for Primavera City.
  • April 2016 IDC reported to the PSE that their net income for 2015 was 142% higher than their 2014 net income. The report also stated that the company’s operating income was 129% higher last year than it was in 2014. IDC also enjoyed an increase of more than 20% in terms of total resources.
  • Today, IDC opened at PHP 4.40 per share and closed at PHP 4.46, with day low of PHP 4.28 and a day high of PHP 4.49.

Ever since its IPO was launched, IDC has seen things looking better and better. Today’s share price may not be as high as during their inaugural trading, but it is definitely higher than their originally projected maximum share price.

It may also be worth noting that a significant part of the goal for the IPO has already been achieved. On June 24, 2016, Phase I of Primavera City was finally launched. This project is composed of six 10-storymixed-use buildings plus a high-rise, and Phase I involves the construction of the first two buildings consisting of 337 units, 57 of which are commercial units and 280 residential units. Of the 280 residential units, 231 are designed to be studio-type, 22 one-bedroom units, and 27 two-bedroom units.

Confident of their continued positive performance in the stock market, IDC is committed to continually pursuing projects that showcase elegant architecture and contemporary aesthetics while always promoting environmental sustainability. They are currently eyeing the property markets of Lipa, Batangas, Dumaguete City, Iloilo City, and Subic Bay Freeport. PSE Chair Jose T. Pardo himself has expressed his confidence that the capital raised from this IPO will help the company develop more functional properties with the goal of conserving the natural and manmade resource of our country.

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