FILINVEST REIT Corp. (FILREIT) set the final offer price for its initial public offering (IPO) at P7 per share, or 15.7% lower than the P8.30 threshold it set.
Formerly Cyberzone Properties, Inc., FILREIT is the real estate investment trust (REIT) unit sponsored by Filinvest Land, Inc. (FLI).
“Please be advised that the final offer price for the REIT initial public offering of Filinvest REIT Corp.’s common shares is P7.00 per common share,” the company said in a notice on Monday evening, which was signed by FILREIT President and Chief Executive Officer Maricel Brion-Lirio.
The offer is comprised of 1.63 billion common shares owned by FLI, with an overallotment option of 163.42 million common shares. FLI will receive all proceeds from the IPO.
“Its parent will still be getting more than P11 billion from the listing. I think this is fair considering the dividend yield,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in a text message on Tuesday.
FLI and FILREIT officials told BusinessWorld in an interview in June that proceeds from the offer will be used according to its reinvestment plan. This includes funding for its capital expenditures (capex) for office buildings, industrial warehouses, and raw land acquisition.
Proceeds may also be used for FLI’s capex for retail malls and the expansion of its district cooling system.
“FILREIT’s office buildings have unique eco-friendly features that compliment it which [makes] it attractive to investors,” Mr. Mangun said.
Its initial REIT portfolio covers 17 buildings, which includes one in Filinvest Cebu Cyberzone in Cebu IT Park.
Meanwhile, 16 are located within Northgate Cyberzone’s Filinvest City in Alabang, which features an electric-powered public transport system called the “eco-loop” and has a district cooling system.
Filinvest City has received the LEED (Leadership in Energy and Environmental Design) v4 Gold for Neighborhood Development certification. It is said to be the first central business district to receive the said recognition.
The majority of tenants in the properties included in its portfolio are said to be multinational business process outsourcing (BPO) firms.
“This may encourage more investors to subscribe to the IPO given that the dividend yield may now be more attractive, given the FILRT properties’ strategic location as well as the positive market outlook for the BPO industry,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Tuesday.
According to a July 7 statement, FILREIT said it expects its offer period to run from July 26 to Aug. 3. It also set its tentative listing date at the local bourse on Aug. 12. Shares will be listed under the ticker symbol FILRT.
Meanwhile, FLI shares at the local bourse declined by 0.88% or one centavo on Monday, closing at P1.12 each.