AREIT Inc., the real estate investment trust firm owned by Ayala Land Inc., priced its initial public offering shares at P27 apiece to raise more than P13 billion.
AREIT will generate up to P13.57 billion in proceeds from the sale of 456.88 million common shares consisting of 47.86 million new common shares and 409 million secondary shares, plus 45.68 million in overallotment shares.
The final offering price is 10.15 percent lower than the maximum P30.05 per share that the company indicated in the registration statement filed with the Securities and Exchange Commission.
AREIT’s IPO will be the country’s first REIT listing following the issuance of the REIT Act in 2009.
The offering period will run from July 27 to Aug. 3, 2020 while the listing of AREIT’s shares is set on Aug. 13.
AREIT’s property portfolio consists of three commercial buildings, including Solaris One and Ayala North Exchange and McKinley Exchange.
Net proceeds from the maiden share offering will be used to acquire Teleperformance Cebu from ALO Prime Realty Corp., a wholly-owned subsidiary of Ayala Land.
After the IPO, Ayala Land will remain as the majority shareholder, with 51-percent interest in AREIT.
BPI Capital Corp. will serve as the sole global coordinator for the maiden share sale while BPI Capital, UBS AG Singapore Branch, PNB Capital and Investment Corp. and SB Capital Investment Corp. will act as joint underwriters for the offering.
REIT aims to provide a new asset class to the public, allowing investors to diversify their portfolio and democratize ownership of real property assets in the Philippines.
The REIT law was passed in 2010, but it was only after the regulators eased the rules that property developers became interested in issuing REITs.