LOCAL utilities firm Calapan Ventures Inc. (CVI) is keen on going into an expansion mode after its initial public offering (IPO) scheduled next month, company officials said.
CVI Chairman Jolly L. Ting said that the firm plans to service more barangays in the Calapan, Oriental Mindoro area as well as other local government units and water districts under the public-private partnership (PPP) scheme.
“We are looking at replacing the old distribution pipes with new ones and reducing non-revenue water [NRW] to 20 percent from the current 36 percent [in our service area]. We will also reach areas in Calapan where there is no piped-in water yet,” Ting told reporters in a recent interview.
He said the company is looking at drafting a masterplan for a sewerage system for Calapan once it is done with its IPO scheduled on Nov. 24.
CVI is in the process of completing feasibility studies on water supply for two towns in Mindoro and in Agoo, La Union.
“We’re doing the feasibility studies for free, hoping that they will consider our services once they decided to implement their respective water projects,” said Ting.
Company officials noted that there is a huge potential for growth in Calapan City and Tabuk City, Kalinga where it has forged an operation and maintenance (O&M) contract with the local government in 2006.
In Calapan City, the company is currently servicing 8,613 out of the 25,137 households in 32 out of 62 barangays.
CVI was also granted an O&M contract in Tabuk where it is servicing 2,809 out of 17,280 households.
Apart from providing water to Calapan residents, the company’s subsidiary Kristal Water is planning to operate an ice-plant facility in the area.
Ortrud T. Yao, chief financial officer of Calapan Ventures, said the company will offer 42.16 million shares at an offer price of P2 to P2.50 per share on Nov. 24.
The company is targeting to raise as much as P105 million from its IPO.
CVI is majority-owned by listed parent company Jolliville Holdings Corp. whose business interests are in leasing, property development and land banking, management services, water utility, and power generation.
Through Calapan Waterworks Corp. (CWC), the company provides water production and distribution services in Calapan City and Tabuk City.
(Jennifer A. Ng)
