Kepwealth Property Philippines Inc., a former unit of Singapore-based Keppel Corp., is raising as much as P384.7 million through an initial public offering scheduled next month.
Kepwealth said in an offering memorandum approved by the Philippine Stock Exchange it would offer 67,032 million primary shares for up P5.74 apiece.
The offered shares represent 33.34 percent of the company’s issued capital stock. They will be listed under the Small, Medium and Emerging Board of the local bourse.
Kepwealth stands to have a market capitalization of P1.15 billion after the IPO.
“It may have taken some time before we had our first IPO but I am pleased that KPPI is embarking on its maiden share sale. I hope that this move will encourage other companies that pushed back their IPOs to revisit their plans and consider the stock market as an avenue for capital raising,” said PSE president and chief executive Ramon Monzon.
Kepwealth scheduled the offering period from August 5 to August 9 and listing date tentatively on August 19.
The company tapped BDO Capital and Investments Corp. as the sole issue manager and underwriter of the offering.
Kepwealth plans to use net proceeds from the offering to diversify its asset base and expand the office leasing portfolio with the acquisition of about 3,500 square meters of leasable space.
The property firm said it would earmark P245 million of the net proceeds to acquire office spaces mainly in Pasig City and Makati City, and P120 million in Davao City within the first to the second quarters of 2020.
The company currently owns 77 office condominium units with 98 leasable spaces in Kepwealth Center, a commercial building at Samar Loop corner Cardinal Rosales Avenue, Cebu Business Park, Cebu City.
Upon completing the IPO-funded acquisitions, the company expects to have an estimated 18,121 square meters of leasable space.
Kepwealth was previously owned by Keppel. Keppel in 2017 divested its 100-percent stake in Kepwealth to Euro Capital Land for P793.6 million ($15.5 million).
Euro Capital owns 12 per cent of the company while Crown Castle Holdings holds a 56.4-percent stake. We Serve 24 Hours owns 25.6 percent.
Kepwealth will be the first company to conduct an IPO this year.