AREIT Inc. has set the final offer price for its initial public offering (IPO), Wednesday, July 22, at P27 per share.
According to a disclosure to the local bourse on Thursday, July 23, the P12,335,841,000 billion IPO will launch the first real estate investment trust (Reit) company in the country following the issuance of the Reit Act in 2009. It shall provide a new asset class to the public, allowing investors to diversify their portfolio and democratize ownership of real property assets in the Philippines.
AREIT intends to use the net proceeds from the primary offer to fund the intended acquisition of Teleperformance Tower in Cebu IT Park from ALO Prime Realty Corp., a wholly owned subsidiary of AREIT’s sponsor, Ayala Land Inc. (ALI), or an alternative property from ALI, or any of its subsidiaries or affiliates, that financially and strategically meets or exceeds Teleperformance Tower and AREIT’s financial and strategic investment criteria.
The net proceeds from the secondary offer shall be reinvested by ALI, as sponsor to AREIT, in real estate projects located in the Philippines within a period of one year from receipt thereof, consistent with applicable rules and regulations.
The IPO shall include the offer and sale of up to 456,883,000 common shares of AREIT, consisting of 47,864,000 new common shares to be issued and offered by AREIT by way of a primary offer, 409,019,000 existing common shares offered by ALI as selling shareholder pursuant to a secondary offer, and an offer of up to 45,688,700 optional shares pursuant to an over-allotment option.
Seventy percent of the firm shares shall be for the institutional offer to international and domestic qualified institutional buyers while the remaining 30 percent shall be offered to eligible trading participants and to local small investors following the approved implementing guidelines.
The offer period will run from Monday, July 27, 2020, 9 a.m. to Monday, Aug. 3, 2020, 12 p.m. The target listing of AREIT’s shares will be on Aug. 13, 2020.
ALI as sponsor is committed to grow and support AREIT post-listing. Assuming full exercise of the over-allotment option, ALI shall remain as majority shareholder, holding a 51 percent interest in AREIT. (PR)