AREIT Inc., the real investment trust (REIT) unit of Ayala Land Inc., said it is pricing its initial public offering (IPO) at P27 apiece, grossing for the first REIT IPO P12.34 billion.
The offer is divided into an initial 47.86 million primary shares and another 409.02 secondary shares for the firm offer, and another 45.69 million secondary shares covering the overallotment option. Ayala Land, the REIT sponsor, is also a selling shareholder in the IPO.
AREIT will have its IPO run between July 20 and August 3 with listing eyed on August 13,.
AREIT will gross P1.29 billion from the overall IPO proceeds, the rest going to Ayala Land, which will be used to fund the acquisition of sister company Teleperformance Cebu from ALO Prime Realty Corp.,, an alternative property from Ayala Land, or any of its subsidiaries or affiliates, that “financially and strategically meets or exceeds Teleperformance Cebu and AREIT’s financial and strategic investment criteria.”
Ayala Land in a statement said the proceeds that will accrue to its balance sheet shall be reinvested in “real estate projects located in the Philippines within a period of one year from receipt thereof, consistent with applicable rules and regulations.”
AREIT said 70 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.
