Yu-Martinez Group cancels 8990’s follow-on offer, citing volatile market conditions

Mass housing builder 8990 Holdings Inc. of the Yu-Martinez Group has withdrawn plans for a P26.6 billion follow-on offering with investors less willing to take risks amid a fall in stock prices triggered by global headwinds.

In a regulatory filing, 8990 said its management in consultation with selling shareholders Pasir Salak Investments Ltd. and TPG Rafter Holdings decided to cancel plans to offer up to 1.4 billion common shares through a public offering at a maximum price of P18.99 per share.

“Since the registration statement was filed, the management teams of the company and the selling shareholders have exerted diligent and good faith efforts to prepare for the offer and implement the various steps needed to comply with the requirements for registration in order to have been in a position to proceed with the proposed offer. However, this has proven to be very challenging given current market volatility and the economic uncertainties due to the continuing pandemic, including increasing inflationary pressures exacerbated by the Ukraine-Russia conflict,” 8990 said.

“When the registration statement was signed on January 24, 2022 the PSE Index was at 7,252.64. It has declined to 6,352.32 as of July 7, 2022. The company and selling shareholders are continuing to seek guidance from their financial advisors in relation to when circumstances are more favorable to re-file the registration statement,” the company said.

In the event market conditions improve, 8990 has asked the SEC for a full credit of the P7.28 million in filing fees it paid in relation to the filing of the registration statement.

The re-IPO would have allowed 8990 to increase public float and trading liquidity.

Net proceeds from the offering were intended to repay loan obligations as well as fund working capital, land banking and expansion initiatives.