Boutique housing developer Ovialand Inc. is waiting to see how the equities market receive upcoming giant initial public offerings (IPOs) by the SM and Razon groups before considering another bid for public listing.
In an interview, Ovialand President and CEO Pammy Olivares-Vital said they will be ready to launch their upsized IPO as soon as the market is ready adding that, “I think the market will be ready once the larger IPOs are successfully executed.”
She named SM Prime Holdings’ real estate investment trust IPO as well as the market debut of Prime Infrastructure of billionaire Enrique K. Razon Jr. as the ideal gauge of the market’s readiness for new stock offerings.
“That’s the advice we’re getting from the (investment) bank that once those are going to be successful, then that's the signal that foreign investors are back, and we’ll have a better chance of having a good IPO,” Vital explained.
She added that while Ovialand’s shelved IPO plan was to raise up to P2.2 billion, they now plan to offer “more than what we had initially filed for… When we had to defer our IPO, we put all our efforts in still growing the company. So we have growth in 2023. We have substantial growth again expecting for 2024, so that number will most likely be changing.”
In the meantime, Vital said they will focus on delivering the houses to homebuyers, particularly through Ovialand’s new partnership with Takara Leben of Japan.
“For us to be paralleling the IPO together while we are opening the projects with them, it might not be a balance of time. So, right now, our focus is to be a good partner to Takara Leben,” Vital noted.
Ovialand has partnered with Takara Leben to develop about five premier affordable home projects in Bulacan and CALABARZON starting with the P1.97 billion Savana South in Laguna.
Vital said Ovialand and Takara Leben will establish a joint venture company that will serve as the developer of the projects.
Takara Leben will serve as a key partner in various projects Ovialand will pursue throughout its strategic regional expansion plans.
“The motivation for this is very simple and straightforward. We want to build more premier quality homes in more areas of the country for the prosperity and happiness of more Filipino families,” said Vital.
The first project will be Savana South, which will complement Ovialand’s market presence in Laguna. Savana South will be a 6.5-hectare development for 657 homes that will generate P1.97 billion in sales over four years.
Under the agreement, Ovialand and Takara Leben will seek to open other projects together. Their locations will be strategically determined in accordance with Ovialand’s goal to have a nationwide presence by 2030.