TORRE Lorenzo Development Corporation (TLDC) said it is considering a possible public listing to raise funds for sustaining the company’s growth over the next five years.
In a recent interview, TLDC chief finance officer Emmanuel Rapadas told reporters that conducting an initial public offering (IPO) on the Philippine Stock Exchange is an option they are looking at.
“It’s always an option, but the focus now is to grow the company to a certain size, where we will be a mid-sized property developer by 2020,” Rapadas said.
The company is focused on achieving Vision 2020, a five-year plan it set in 2015 under which it aims to have a portfolio of 20 projects and be a P20-billion enterprise by market capitalization by 2020.
An “IPO is one of the options we’re looking at as a funding mechanism, funding opportunity to sustain the growth of the company beyond the next five years,” Rapadas said.
Asked about a timeline, he said: “It will depend on the market conditions at the time. It will depend on valuations, on the readiness of the company.”
Rapadas stressed that the company is confident of sustaining its growth in the next five years even without listing on the local stock market, noting that they are looking at a consolidated annual growth rate of 25 to 33 percent.
“By the time we are done with our first five-year plan, we should have gross revenue of about P8.5 to P9 billion and net income after tax after five years [of]between P1.3 and P1.5 billion,” Rapadas said.
In line with achieving its 2020 goals, Torre Lorenzo is looking at a capital expenditure of P30 billion to P32 billion until 2020. It is scheduled to launch five projects this year in Pampanga, Batangas, Cavite and Manila.
“For this year, the total project disbursement estimate is about P2.5 billion, but we’re committing at least P6 billion for the projects to be launched this year. Those are five projects. So somewhere between P6 and P7.5 billion,” Rapadas explained.
He said Torre Lorenzo has a “sufficient” amount of land bank, currently at about 350 hectares.
“We acquire to make sure we are good for the next five years,” Rapadas said, adding that the company continues to look for properties in fast-growing secondary and emerging cities.
“So we’re looking at San Fernando (Pampanga) and Lipa (Batangas), Baguio. So that will be the focus of our land acquisition,” Rapadas said.