MANILA, Philippines?Globe Asiatique Realty Holdings Corp. has withdrawn its P3.4-billion initial public offering (IPO) after its underwriter resigned on the heels of reports about the former?s questionable loan transactions with state-run Home Development Mutual Fund (Pag-IBIG Fund).

In a circular posted on Monday, the Philippine Stock Exchange (PSE) said BDO Capital and Investment Corp. had advised Globe Asiatique about its resignation as the issue manager and lead underwriter for the proposed IPO.

?As the exchange would no doubt appreciate, the resignation of BDO Capital will cause obvious insurmountable difficulties to our ability to launch a successful initial public offering, especially at this stage of the process,? Globe Asiatique chief finance officer Dexter Lee said in a Sept. 6 letter that the PSE posted on the same day.

BDO Capital?s resignation came in the midst of a controversy over nearly P7 billion in Pag-IBIG housing loans that Globe Asiatique had taken out on behalf of nearly 9,000 borrowers in Xevera Bacolor and Xevera Mabalacat, two of the firm?s housing projects in Pampanga province.

Hundreds of the loan accounts turned out to be spurious with an undisclosed number of borrowers not even aware they had applied for and been granted Pag-IBIG loans.

But Globe Asiatique said its business plan and model were still sound.

?(Globe Asiatique) still believes that it does still offer an extremely attractive investment for the public and hopes to one day be able to realize its goal of launching a successful IPO on the exchange,? Lee said.

?As such, we are continuing to have discussions with potential private investors at this stage and we envisage reapplying to the exchange for approval to launch another IPO at a later point,? he said.