House-and-lot developer Ovialand Inc. plans to conduct a P1.5-billion initial public offering in June this year to fund expansion.
Ovialand president Pammy Olivares-Vital said the company would use up to 60 percent of the proceeds from the fund-raising activity to acquire more land for future development.
Ovialand plans to expand its landbank to 200 hectares over the next five years from 43 hectares.
The property firm is looking to acquire 50 hectares this year. It has developments in Southern Luzon and is preparing to expand its presence in other parts of the country, according to Vital.
“We want to establish presence in new regions to be able to serve a bigger market. The growth strategy is to become a market leader one region at a time,” she said.
The company is expanding its capacity to build houses from 900 units a year to 3,000 units by 2025 and 6,000 units by 2030.
Ovialand focuses on the mass housing market and sells house-and-lot packages from P1.8 million to P3.2 million.
Ovialand recorded a 90-percent increase in 2021 revenues to P873 million from P462 million in 2020. It also delivered 430 units to clients last year.
Majority of the sales were taken out by financing institutions such as PAG-IBIG Fund.
It aims to complete 600 houses this year. Among its ongoing developments are Caliya in Candelaria, Quezon and Santevi in San Pablo, Laguna which are under joint venture with Japan-based Kyushu Yaesu Co. Ltd., a subsidiary of Saibu Gas Holdings Co. Ltd.
It also has other housing properties in Laguna such as Sannera and Savana in San Pablo and Terrazza de Santo Tomas in Sto. Tomas, Batangas.