THE Philippine Stock Exchange, Inc. (PSE) has approved the initial public offering (IPO) application of Premiere Island Power REIT Corp. or Premiere REIT.
In a press release on Tuesday, the PSE said that it cleared the IPO of the power and infrastructure real estate investment trust (REIT) platform of Villar-led Prime Asset Ventures, Inc. According to the preliminary offer dated Nov. 21, the selling shareholders expect to raise around P3.22 billion.
Premiere REIT will offer up to 1.4 billion shares with up to 210 million as an overallotment option. Each share is priced at P2 apiece, with the final offer price to be determined on Wednesday after the company concludes its book building.
The IPO will be sold by the company’s sponsors — S.I. Power Corp. and Camotes Island Power Generation Corp. REITs are established to own income-generating real estate assets.
In the preliminary offer, the SEC is said to issue an order of effectivity and permit to sell on or about Nov. 25. The offer period is expected to run from Nov. 28 to Dec. 5, while the tentative listing date is set on Dec. 15.
All of the offer shares are expected to be listed on the main board of the PSE under the ticker symbol: PREIT.
China Bank Capital Corp. will be the sole issue manager, underwriter, and bookrunner of the IPO, while RCBC Capital Corp. will serve as a participating underwriter. Premiere REIT tapped VFund Management, Inc. as fund manager and VProperty Management, Inc. as its property manager.
“REITs have become a popular asset class among investors in the last two and a half years,” PSE President and Chief Executive Officer Ramon S. Monzon said.
“We welcome more listings in this space to expand the REIT options available to investors,” he added.
According to the press release, local small investors may subscribe to the IPO through the PSE’s EASy website or mobile application. — Justine Irish D. Tabile