DoubleDragon Properties Corporation has set the initial public offering price of DDMP REIT, Inc. (DDMPR), the second Real Estate Investment Trust (REIT) to debut on the bourse, at P2.25 per share.
The final IPO price of P2.25 is the maximum of its indicative offering price and translates to a maximum offer size of P14.7 billion.
The firm is offering 5.94 billion common shares with an over-allotment option of up to 594.25 million shares.
The offer period will run from March 10 to 16, 2021 and is tentatively scheduled to be listed on the main board of the PSE on March 23, 2021.
“The DDMP basket is seen to be a compelling REIT offering since it will include the land, a premier corner lot located along the main thoroughfares of Macapagal Avenue, EDSA Extension and Roxas Boulevard, where the first 6 completed buildings sit on,” said DoubleDragon Chairman Edgar “Injap” Sia II.
He added that, “This feature is expected to be a game changer since the value of the prime double corner 4.75 hectare block of land with titled land ownership to be held in perpetuity should keep on appreciating decade after decade, a very important inclusion for both domestic and foreign investors,” as previously.”
“When there is underlying titled land ownership included in the REIT shares, even a hundred years from now it should keep its hard value intact. We see DDMP shares as a ‘Pamana Stock’ that even our future grandchildren will be happy to inherit,” Sia noted.
“We are optimistic that more property companies will list REITs in the Exchange this year given the benefits to the REIT company, its investors and to the country’s economy because of the reinvestment in the Philippines rule for the REIT’s sponsor,” said PSE President and CEO Ramon S. Monzon.
As with all IPOs, 10 percent of the offer shares will be set aside for Local Small Investors (LSIs). These shares are available for subscription to LSIs through the PSE Electronic Allocation System (PSE EASy) platform during DDMPR’s offer period.
All first time REIT IPO investors, whether subscribing through PSE EASy or directly through REIT-eligible stockbrokers, must secure a Name on Central Depository (NoCD) account before they can avail of REIT shares.
The Implementing Guidelines for trading participants and LSIs and DDMPR’s REIT Plan will be published on the PSE EDGE website (https://edge.pse.com.ph).