By JAMES A. LOYOLA
Property giant Ayala Land, Inc. (ALI) is seeking to be the first Philippine company to undertake an initial public offering (IPO) of a real estate investment trust (REIT) with shares worth up to ₱15 billion.
In an application filed with the Securities and Exchange Commission, ALI subsidiary AREIT, Inc. said it is planning to offer up to 478.64 million shares consisting of 47.86 million primary shares and 430.78 million secondary shares.
It also has an over-allotment option of up to 23.93 million shares. The REIT shares will have an offer price of up to ₱30.05 each. BPI Capital Corporation is the issue manager, bookrunner and lead underwriter for the planned IPO.
The move comes 11 years after the passage of the Real Estate Investment Trust Act of 2009 and the release of the Revised Implementing Rules and Regulations (IRR) last January 20, 2020.
The REIT Act, passed by Congress in 2009, allows REIT companies to list and trade its shares of stock in the Philippine Stock Exchange (PSE) as an alternative means to raise funds for property development and expansion initiatives.
The REIT is a new asset class that provides investors with dividend-based income, inflation protection, and portfolio diversification.
It broadens investment options for Filipinos, opening the opportunity to own a stake in high-value real estate assets in the country.
“Ayala Land’s initiative to pioneer REITs in the Philippines reflects its confidence in the local economy. Through this initial capital market transaction, ALI hopes to pave the way for the development of a REIT market in the country, bringing another milestone to the Philippine stock market,” the firm said.