Capital

Necisto Sytengco Hoping to Raise Php12 Billion in May IPO of SBS Holdings

This will be the tycoon’s second listed firm after SBS Philippines Corporation.
IMAGE Hub Pacheco
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The year 2018 was an eventful one for Necisto Sytengco, founder of listed Philippine firm SBS Philippines Corporation.

It was the year he first made it to the exclusive and prestigious list of US magazine Forbes’ rankings of the 50 richest people in the Philippines, coming in at the 41st spot with an estimated net worth of $180 million. In December, regional non-governmental organization Enterprise Asia awarded him its biggest honor, Entrepreneur of the Year, as part of its Asia Pacific Entrepreneurship Awards (APEA) for 2018.

This year, the established businessman shows no signs of slowing down.

In an interview with Sytengco in the sidelines of the APEA in early December, he said he hopes to raise around Php12 billion in the initial public offering (IPO) of another of his companies, SBS Holdings and Enterprises Corp., at a target price of between Php3.90 to Php4.50 per share. He said the target listing date is to be set in May 2019.

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Created as early as 2005, SBS Holdings and Enterprises Corp. is a wholly-owned subsidiary of listed firm SBS Philippines Corporation. Sytengco said SBS Holdings, which has business engagements in land banking, is now his biggest business among over 50 different companies--overtaking his one and only public firm SBS Philippines Corporation, which is engaged in the trading and distribution of chemicals to various industries in the country.

“[SBS Philippines is] not as big,” Sytengco said. “Ten years ago it was the biggest, but when Asian [financial] crisis came in 2008, I got the opportunity [to venture into land banking.]”

Sytengco narrated how he came across a parcel of land in Fort Bonifacio, now more commonly known as Bonifacio Global City in Taguig.

“Nobody was buying during that time. I took an opportunity,” he recalled. “We bought it only for Php40,000 to Php45,000 [per square meter]. Then we were able to sell it at more than Php400,000 [per square meter].”

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Fast forward to the present, the company is doing even better. Sytengco said the company has forged partnerships with another listed firm, 8990 Holdings Inc., and currently owns properties in prime locations such as Ayala Ave., along EDSA, and in Balintawak right behind the MRT station.

“I have this gut feeling... I know that I can easily say that ‘ah, this property is good, this property is not.’ I am very perfect with that,” he said.

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Pauline Macaraeg
Esquire Philippines
Pauline is Esquire Philippines’ data journalist. Follow her on Twitter @paulinemacaraeg.
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