PSE approves P3.2-B IPO of Villar-backed Premiere REIT
Billionaire Manuel Villar Jr.’s Premiere Island Power REIT Corp. has set the offer period of its P3.2- billion initial public offering from Nov 28 to Dec 5 this year.
The Philippine Stock Exchange on Tuesday approved the company’s listing application, making it the 9th IPO for the year and the seventh publicly-traded firm within Villar’s Group.
The IPO shares would be priced on Nov. 23 while the company’s target trading debut, under the stock symbol “PREIT”, was set for Dec. 15 this year, according to the PSE.
Premiere Island Power REIT is a power and infrastructure-themed real estate investment trust (REIT), whose earnings are mainly distributed to shareholders as dividends.
“REITs have become a popular asset class among investor in the last two and a half years. We welcome more listings in this space to expand the REIT options available to investors,” PSE President and CEO Ramon S. Monzon said in a statement on Friday.
The IPO involves the sale of up to 1.4 billion common shares priced at P2 per share plus an option to sell another 210 million shares.
The shares are secondary stocks, meaning the proceeds will go to the selling shareholders S.I. Power Corp. (Sipcor) and Camotes Island Power Generation Corp. (Campcor), which are controlled by Villar.
The initial portfolio will consist of land and power plant assets utilized in the power generation projects of Sipcor and Camphor in Cebu and Siquijor, which have a total combined installed capacity of 21.2 megawatts.
VFund Management Inc. and VProperty Management Inc. have been tapped as fund manager and property manager, respectively.
Moreover, China Bank Capital Corp. was hired sole issue manager, underwriter, and bookrunner for the IPO. while RCBC Capital Corp. will serve as participating underwriter.
Based on the deal prospectus, Premiere Island Power REIT was projecting a “base case” divided payout of 6.9 percent in 2022 and 7.2 percent in 2023.
The company said proceeds would be used by sponsors to acquire and develop real estate that would be leased to affiliate PAVI Green Renewable Energy Inc. for its various projects.
“Such properties may be eventually be infused into the company, and this reinvestment strategy is expected to eventually make the Company a leading renewable energy REIT in the Philippines,” the prospectus showed.
Eight companies have listed on the PSE so far these year.
These were Haus Talk Inc., Figaro Coffee Group Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group, Inc., Raslag Corp., VistaREIT Inc., and Balai ni Fruitas Inc.
