Golden Haven Memorial Park Inc. (HVN) is ramping up expansion this year and has earmarked P557 million for capital spending.
The Manny Villar-led memorial park has just obtained regulatory approval for it’s intiial public offering (IPO) from which it intends to fund it’s expansion.
The bulk of capital expenditure or P231.8 million will finance land development, while P195.5 million is allotted to the construction of a chapel and crematorium in Las Piñas, Roy Joseph Fernandez, chief finance officer Golden Haven, said.
The remaining money will be set aside for general corporate purposes.
The company allotted P10 million to its 2015 capex.
From June 16 to 22, the firm is offering 74.1 million shares to the public, representing 15 percent of the total issued and outstanding common shares of HVN at P10.50 apiece.
It expects to generate P778.2 million from the maiden share sale. Minus the transaction fees and other expenses, the net proceeds from the IPO would likely be P711.77 million.
Asian Alliance Investment Corp. is the sole issue manager and lead underwriter for the maiden share sale.
“We will exhaust our issue size. We were authorized by the SEC and the PSE [Securities and Exchange Commission and Philippine Stock Exchange] to float up to 74.12 million shares. So should we find the need to go back to the market we will reapply for a second tranche,” Fernandez said, citing the likelihood of an oversubscribed IPO.
Bulk of Golden Haven’s business is still selling memorial park lots at 170, 000 per lot in Las Piñas and P40,000 per lot outside the capital region.
A lot is about 2.5 square meters, while the more affluent families could buy as many lots as they could for family mausoleums or estates.
Jerry Navarrete, president and chief executive officer of HVN, said the company has mapped out a strategy of developing a Golden Haven in every hometown to be the nationally-recognized brand in the death care products and services industry.
“We are confident that with the synergies with its affiliates, specifically with Vista Land & Landscapes Inc., by capitalizing in 95 cities and municipalities where Vista Land is present,” Navarrete said, who is also the president and CEO of Villar’s Star Mall’s Inc.
Golden Haven is one of the leading developers of memorial parks in the country with 55.2 hectares of development.
It has eight locations nationwide, and is building six memorial parks and four columbaries in the cities of Las Piñas and Cagayan de Oro, and in the provinces of Bulacan, Cebu, Zamboanga, and Iloilo.
It has newly-acquired properties in Nueva Vizcaya and Pampanga for future development.
“Being an affiliate of Vista Land, which is one of the country’s leading integrated property developers, Golden Haven intends to continue its strategic expansion throughout the country by land acquisition that will focus on key locations where Vista Land has projects to bank on the marketing strategies between the two companies,” Maribeth Tolentino, chief operating officer of Golden Haven, said.
“Vista Land customers constitute ready customers for Golden Haven clients. We would capitalize on Vista Land’s agents, access to its management and technical expertise, contractors, suppliers, and service providers,” she added.
Since traditional Filipinos want to be buried in their hometown, HVN has come up with a strategic expansion program that aims to have a park in every hometown.