Filinvest REIT’s IPO Approved by Philippine Stock Exchange

Filinvest’s real estate investment trust (REIT) was recently approved by the Philippine Stocke Exchange (PSE) on Monday. Filinvest REIT Corporation is expected to sell its shares through an initial public offering (IPO).

1.63 billion secondary shares the company will be offered with an overallotment option of up to 163 million shares, which will likely be sold at ₱8.30 apiece. Filinvest REIT could secure as much as ₱14.9 billion should the maximum price and overallotment option be exercised.

However, the final offer price is still to be announced on July 19 after the book building process has been accomplished. The offer period is already scheduled from July 26 to August 3, and the tentative listing date is on August 12. 10% of Filinvest REIT’s offer shares will be reserved for local small investors.

“The third REIT company is set to join our roster of listed firms and we trust that this will send a strong signal for more companies to consider REIT listing as a viable mechanism to raise capital for their expansion plans; as well as provide our investors alternative investment opportunities,” explained PSE president and CEO Ramon Monzon.

17 office buildings located in prime locations — coming up to over 300,000 square meters of gross leasable area — are included in the property portfolio of Filinvest REIT.

Maricel Brion-Lirio, president of Filinvest REIT, said that their portfolio consists of “high-quality tenants and a strong tenant mix.”

“Some 88.4% of the leasable area are occupied by multinational global [business process outsourcing] tenants and only 2.8% leased by POGOs (Philippine offshore gaming operators),” explained Lirio.

Source: Rappler