AREIT IPO is 2x oversubscribed

L-R top to bottom: ALI vice-chair Jaime Augusto Zobel de Ayala, chair Fernando Zobel de Ayala, president Bernard Vincent Dy, chief financial officer Augusto Bengzon at the ALI 2020 stockholders meeting via Zoom

The country’s first real estate trust (REIT), Ayala Land-backed AREIT Inc., has completed its P12.33 billion initial public offering (IPO), ushering in a dividend-yielding new asset class which was warmly received by the local stock market.

The IPO was oversubscribed by twice the base offer, with “high-quality” domestic and international institutional investors participating in the book-building notwithstanding the continuing COVID-19 global pandemic, Ayala Land disclosed to the Philippine Stock Exchange on Thursday.

The pioneering REIT completed the offer period for its IPO of up to 456.883 million firm offer, consisting of 456.88 million common shares, consisting of 47.86 million shares to be issued by AREIT on a primary basis and 409.02 million secondary shares offered by Ayala Land at P27 per share.

There is an overallotment option of up to 45.69 million shares.

About 70 percent of the base offer shares were offered to qualified institutional buyers based in the Philippines, and outside the United States. About 30 percent were offered to all REIT-eligible trading participants of the Philippine Stock Exchange and to local small investors.

The total offer made available to trading participants and local small investors (LSIs) were 91.38 million and 45.69 million, or about 20 percent and 10 percent of the firm offer, respectively.

The landmark deal and the introduction of the new asset class was well-received by the market, with the deal more than fully covered with broad distribution across retail investors as well as international and domestic institutional investors.

The trading participant tranche was also oversubscribed with the participation of 96 eligible participants. More than 3,300 investors participated in the offer via the LSI tranche.

With the completion of the offer period, AREIT is targeting to list on August 13 this year.

BPI Capital Corp. is the sole global coordinator and joint bookrunner for the IPO while UBS AG Singapore Branch is the sole international bookrunner for the international tranche.

BPI Capital, PNB Capital and Investment Corp., and SB Capital Investment Corp., are collectively underwriters for the domestic tranche, and together with the sole international bookrunner, have entered into underwriting agreements for the respective tranches of the IPO.

-By: Doris Dumlao-Abadilla - Reporter|Inquirer

Source: Peso Economics