The Philippine Stock Exchange Inc. (PSE) has approved the initial public offering (IPO) listing application of DDMP REIT Inc., a real estate investment trust (REIT) mainly sponsored by DoubleDragon Properties Corp.
It will be the second REIT to debut on the PSE since last year.
The company is set to offer up to 5.94 billion secondary common shares at a price of up to P2.25 per share, or some P14.7 billion in fresh funds.
The said shares were owned by Double Dragon, Benedict V. Yujuico and Teresita M. Yujuico. The selling shareholders set aside 594.24 million more shares as overallotment option.
The final offer price will be announced after the company’s book building process.
Its offer period will run from March 10 to 16, and is tentatively scheduled to be listed on the main board of the PSE on March 23.
“We are optimistic that more property companies will list REITs in the Exchange this year given the benefits to the REIT company, its investors and to the country’s economy because of the reinvestment in the Philippines rule for the REIT’s sponsor,” PSE President and CEO Ramon S. Monzon said.
As with all IPOs, 10 percent of the offer shares will be set aside for local small investors available for subscription through the PSE Electronic Allocation System platform that they can purchase during offer period. All first time REIT IPO investors, whether subscribing through PSE EASy or directly through reit-eligible stockbrokers, must secure a Name on Central Depository (NoCD) account before they can avail of REIT shares.
Assuming the full exercise of the overallotment option, new investors will corner 36.67 percent of the issued and outstanding common shares of DDMP.
DoubleDragon will retain a 44.33-percent interest, while Benedict and Teresita will own 9.65 percent and 9.35 percent, respectively.
The selling shareholders will receive the entire proceeds, which shall be reinvested in the Philippines, pursuant to the REIT rules.
Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Limited and PNB Capital and Investment Corp. will act as joint global coordinators for the REIT offering.
The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd., Investment and Capital Corp, of the Philippines, Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd. and RCBC Capital Corp., Credit Suisse, DBS, Nomura, CIMB, Macquarie and Maybank were picked as international bookrunners for the offer, while PNB Capital, ICCP and RCBC Capital will serve as domestic underwriters.
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