The Philippine Stock Exchange, Inc. (PSE) has approved Filinvest REIT Corporation’s planned initial public offering (IPO) of up to P14.88 billion worth of shares.
Set to be the third REIT company to be listed in the Exchange, Filinvest REIT is offering 1.63 billion secondary shares and up to 163 million over-allotment option shares at a price of up to P8.30 per share.
The final offer price will be determined on July 19, 2021 after the company conducts its book building process. The offer period of Filinvest REIT, Corp. is scheduled on July 26 to August 3, 2021 while its tentative listing date is on August 12, 2021.
“The third REIT company is set to join our roster of listed firms and we trust that this will send a strong signal for more companies to consider REIT listing as a viable mechanism to raise capital for their expansion plans; as well as provide our investors alternative investment opportunities,” said PSE President and CEO Ramon S. Monzon.
Ten percent of Filinvest REIT’s firm offer shares will be reserved for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website (http://easy.pse.com.ph) or mobile application.
As sponsor and selling shareholder, Filinvest Land Inc. will receive the entire proceeds of the offer, which shall be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of 2009.
New investors will corner 36.74 percent of Cyberzone Properties’ issued and outstanding common shares, while existing shareholders will continue to own 63.26 percent, should the company exercise the oversubscription option.
As mandated by law, Filinvest REIT shall distribute to shareholders at least 90 percent of its annual distributable income as dividends.
The company has engaged BPI Capital Corporation and UBS AG, Singapore Branch as joint global coordinators and bookrunners for the offer.
BPI Capital will also act, alongside China Bank Capital Corporation, as local lead underwriter while First Metro Investment Corporation and SB Capital Investment Corporation will serve as local co-lead underwriters.
Filinvest REIT’s portfolio currently includes 17 office buildings with an aggregate gross leasable area (GLA) of 299,158 square meters for office spaces and 2,204 square meters for retail.
The office spaces primarily cater to the information technology and business process outsourcing industry in Alabang and Cebu.
The FLI-sponsored REIT tapped ProOffice Work Services, Inc. and FREIT Fund Managers, Inc. as property manager and fund manager, respectively.