AREIT Successfully Concludes P13.6B IPO

AREIT Inc. (PSE: AREIT), the first real estate investment trust (REIT) company in the Philippines, debuted in the Philippine Stock Exchange (PSE) after it successfully completed its P13.6 billion initial public offering (IPO), following the close of the offer period on 3 August 2020.

Following the conclusion of the offer, Ayala Land Inc. (PSE: ALI) will continue to hold at least 51% of AREIT. The post-offer market capitalization will be P27.7 billion, while the public float of AREIT will fall between 44.5% and 49%, subject to the exercise of the over-allocation option. Non-Filipino investors account for 15.7 % of total outstanding shares.

Ayala Land is pleased to have concluded this offering which would promote and strengthen the country’s capital markets. The passing of the REIT law in 2009 signified a new opportunity to diversify the offerings in the real estate industry and Ayala Land was preparing for this as early as 2008.

Philippine Rating Services Corp. (PhilRatings) also assigned an Issuer Credit Rating of PRS Aaa, with a Stable Outlook, to AREIT.

BPI Capital Corp. served as the Sole Global Coordinator and Joint Bookrunner for the IPO while UBS AG Singapore Branch was the Sole International Bookrunner for the international tranche of the IPO. BPI Capital, PNB Capital and Investment Corp., and SB Capital Investment Corp., were collectively Underwriters for the domestic tranche. BPI Stock Transfer Office served as the Receiving Agent and Stock Transfer Agent.

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