Ayala Land’s AREIT Inc., the first Real Estate Investment Trust (REIT) in the Philippines, has reduced its initial public offering size to P12.34 billion from the maximum P15 billion.
This after the firm set its final offer price at P27 per share, below its maximum possible offer price of P30.05 per share. This is also closed to the middle of its tighter indicative price range of P25 to P29.50 per share.
AREIT intends to use the net proceeds from the primary offer to fund the intended acquisition of Teleperformance Cebu from ALO Prime Realty Corporation, a wholly-owned subsidiary of AREIT’s sponsor, Ayala Land Inc., or an alternative property from ALI, or any of its subsidiaries or affiliates, that financially and strategically meets or exceeds Teleperformance Cebu 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.
The IPO shall include the offer and sale of up to 456.88 million common shares of AREIT, consisting of 47.86 million new common shares to be issued and offered by AREIT by way of a primary offer, 409.02 million existing common shares offered by ALI as selling shareholder pursuant to a secondary offer, and an offer of up to 45.69 million 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, 9:00 a.m., to Monday, August 3, 2020, 12:00 noon, Manila time. The target listing of AREIT’s shares will be on August 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.