The Philippine Stock Exchange (PSE) has approved an initial public offer (IPO) of as much as P15.1 billion. A property giant Ayala Land planned and sponsored AREIT Inc. It will the first real estate investment trust (REIT) to enter the local market.
“As a witness a milestone in the capital market with the first REIT IPO. We are excited over the prospects of the REIT sector now that we have a first-mover in REIT listing,” PSE president and chief executive officer Ramon Monzon said in a press statement on Saturday.
AREIT Offers Its Shares
AREIT will offer a total of 502,57 million shares at an indicative price of up to P30,05 per share. It included the over-allocation option of about 45,69 million. The Philippine Stock Exchange is ready for it.
The main offering consists of 47.86 million new common shares, although there will also be 409.02 million secondary shares.
The final price of the offer is on July 22 after the book-building process for the company.
AREIT’s offering will run from July 27 to August 3 while the listing is slated for August 13.
“AREIT has decided to pursue its IPO even under the present economic challenges. In addition. COVID-19 pandemic also brought the impact. We are optimistic that the company’s IPO will pave the way for other property firms, even those that are not yet listed in the PSE, to consider listing REITs,” Monzon added.
REIT is a corporation that invests primarily in income-generating real estate. For instance, office space, shopping malls, serviced apartments, and even hotels, hospitals, infrastructure, and warehouses.
It provides an opportunity for investors to invest directly in the finished projects rather than the developer themselves. On the other side, developers may use the framework to recycle money for other ventures.
AREIT’s property portfolio consists of three officers and commercial buildings, excluding the land namely Solaris One, Ayala North Exchange, and McKinley Exchange.
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