FILINVEST Land Inc. (FLI) said it has approved an increase in the number of shares for the initial public offering (IPO) of wholly owned subsidiary Cyberzone Properties Inc. (CPI).
In a regulatory filing before the Philippine Stock Exchange (PSE) on Monday, March 22, 2021, FLI said it will offer more than 1.63 billion common shares of CPI by way of a secondary offer at an offer price of up to P8.30 per share.
CPI, which developed the provincial government-owned property next to the Cebu IT Park into Filinvest Cyberzone Cebu, is being transformed into a real estate investment trust (Reit) company.
In a meeting on Friday, March 19, FLI said the board approved the offer and sale of up to 1,634,187,850 common shares of CPI to be offered by way of a secondary offer.
The board also approved an over-allotment option for the purchase of up to 163,418,785 common shares of CPI.
FLI first announced in January 2021 its plan to transform CPI into a Reit company, saying it will unlock the value of its office leasing business.
CPI’s portfolio will include office buildings located in Northgate Cyberzone in Filinvest City, Alabang and Filinvest Cyberzone Cebu in Cebu City.
Northgate Cyberzone in Filinvest City is an 18.7-hectare business park designed to cater primarily to business process outsourcing (BPO) companies.
FLI said its BPO buildings have continued to be fully operational during the Covid-19 pandemic and CPI’s office rental revenues increased by 16 percent year-on-year in the first nine months of 2020 to P2.46 billion.
A Reit company owns, and in most cases operates, income-generating properties. The law allows Reit companies to list and trade its shares of stock to raise capital for expansion. (SunStar Philippines)