Construction firm Datem Inc. has joined the list of hopefuls planning to conduct a maiden public offering within this year at the Philippine Stock Exchange (PSE) in a bid to raise capital and expand its operations.
In a statement emailed to the press, the company said it filed the application for its planned initial public offering (IPO) of up to P4.65 billion to the Securities and Exchange Commission (SEC) on Thursday.
Datem’s IPO plan consist of offering 329.046 million shares — 286.127 million shares for the base offer and 42.919 million shares to cover oversubscription — priced at a maximum of P14.15 per share. The company is aiming to list at the PSE by the end of November this year.
Proceeds raised from the share sale are intended for expansion activities in construction, housing and bulk water.
BPI Capital Corp. and First Metro Investment Corp. were appointed as joint issue coordinators, lead underwriters and bookrunners for the offer.
“This is a milestone for Datem and everyone working with the company,” said Levy Espiritu, president of Datem, who added, “Datem has, over its 30-year existence, successfully established itself as a reliable and reputable constructor and has developed a wide range of residential and commercial projects for various clients. The company is geared for bullish growth in the construction industry and in its subsidiary businesses.”
Morris Agoncillo, Datem vice president for Engineering, said, “What distinguishes Datem from its competitors is its adoption and utilization of leading-edge technology and its continuous innovation of construction methodologies. Because of its multi-disciplinary approaches, the company is now regarded as a leader in construction and pre-cast technology.”
“Coupled with the experience and training of highly skilled construction professionals, we are able to provide a unique brand of value-engineered services for our clients,” Agoncillo added.
For his part, Datem Vice President for Operations Arnold de Asis said Datem is a “preferred contractor by major developers” because of its timely and safe delivery of projects.
Datem is a known contractor in construction projects and has built projects such as the upscale Discovery Primea residential towers in Makati; Discovery Shores in Boracay; and the Mind Museum, the country’s first world-class science museum in Bonifacio Global City.
Aside from construction, Datem has recently ventured into the real estate segment through subsidiary Datem Homes Inc., most of whose projects are in Rizal and Davao, and into the bulk water supply and treatment services sector via unit Datem Water Inc., which now has a 15-year bulk water supply contract with Metro Kalibo Water District.
Datem started in both businesses in 2013.
“Our strategy is to take advantage of our strong market position and technological expertise. As we capitalize on the growth potential of the construction industry, we are also undertaking expansion activities in housing development and bulk water services where our technological capabilities can be applied,” Espiritu said.
“With this vision, the company will continue to play a leading role in delivering quality infrastructure, housing and commercial projects for clients, and contribute to the growth of the Philippine economy,” he added.
Last year, Espiritu told The Manila Times that the group has allotted P1 billion capital expenditures (capex) for this year, mostly to ramp up projects in its housing business.
At present, its property unit Datem Homes is focused on its vertical residential projects which include the P2-billion Datem Horizons in East Ortigas, a P2-billion residential project in Taguig City, and a P1.8-billion medium-rise building in Quezon City.
Its flagship project Datem Horizons is a six-towered medium rise residential project located along Quezon Avenue Extension. The six condominium towers consist of 700 units, amounting to 6,000 square meters in gross floor area. It provides two- to three-bedroom units priced at P3.1 million to P4 million. The project started construction in June 2014 and is set for completion by 2017.
The Quezon City-based contractor firm has almost 30 ongoing projects with big developers such as eight residential projects for Megaworld Corp., One Shangri-La Place for Kuok-led Shang Properties Inc., Twin Oaks Place for Greenfields Development Corp., Arya Residences for Arthaland Corp., Grand Hyatt Residences for Federal Land Inc., Axis Residences for Robinsons Land Corp., The Makati Place for Alphaland Corp., and Parksuites for Anchor Land Holdings Inc., among others.