Taking Ayala Land Inc. (ALI) public three decades ago despite many uncertainties has allowed the property developer to unlock its potential and has opened opportunities for the company’s expansion into new areas, the company’s chairman Fernando Zobel de Ayala said.
“The ALI of today is a product of the hard work, values, and vision of many enterprising and committed people over the past three decades, including the many clients, merchants, and partners who have trusted us over the years as well,” Zobel said on Friday. Ayala Land went public on July 5, 1991 with a P2.5 billion stock offering, despite a challenging business environment brought about by crises, such as the Gulf War and the Mt. Pinatubo eruption.
The company offered a total of 96 million class B shares at a price of P26 per share, making it the largest initial public offering (IPO) at the time.
The listing was well received by the market as it was four to five times oversubscribed, and the proceeds generated were used to finance real estate development projects and future acquisitions. Ayala Land’s shares were last traded at P33.15 apiece.
The company today maintains a total land bank of 12,483 hectares nationwide and has widened its reach through diversified offerings across five residential brands, with 2.12 million square meters of malls, 1.23 million square meters of offices, 4,030 hotel and resort rooms and a recent expansion into new leasing formats such as warehousing, dormitories and co-working spaces.
“The company’s total assets, revenues, and net income have posted compounded annual growth rates of 16 percent, 12 percent and 9 percent, respectively, since our listing. These results have brought ALI’s market capitalization from P42 billion in 1991 to over P500 billion at present, a near 14-fold increase, making Ayala Land among the largest companies in the Philippine Stock Exchange Index,” Zobel said.
“The success of Ayala Land in the last 30 years is a testament to the confidence that its stakeholders has placed in the company—that it will rise above challenges and continue to deliver its brand of excellence in all its projects and in the way it takes care of its stakeholders,” PSE president and CEO Ramon S. Monzon said.