The Securities and Exchange Commission approved on Tuesday the P14.94-billion initial public offering of Cyberzone Properties Inc., a real estate investment trust company owned by Filinvest Land Inc.
CPI will soon be renamed Filinvest REIT.
The SEC said in a statement it approved the offering of 1.634 billion CPI secondary shares at a price of up to P8.30 apiece, with an over-allotment option for another 163,418 million common shares. FLI currently the offer shares.
Documents showed the offer period will be from July 19 to 28, while the listing of shares under the main board of the Philippine Stock Exchange will be on Aug. 6.
The net proceeds from the offering will be used to finance the construction of several real estate projects of FLI. Post-IPO the new investors would corner 36.74 percent of CPI’s total issued and outstanding common shares, while major shareholders would retain the remaining 63.26 percent once the company exercised the oversubscription option.
CPI will distribute to shareholders at least 90 percent of annual distributable income as dividends as provided under the REIT law.
The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses and other items in accordance with internationally-accepted accounting standards.
It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within a year from the date of the sale.
The company hired BPI Capital Corp. and UBS AG, Singapore Branch as joint global coordinators and bookrunners for the offer.
BPI Capital will also act as local lead underwriters while First Metro Investment Corp. and SB Capital Investment Corp, will serve as local co-lead underwriters.
CPI’S portfolio includes 17 office buildings with an aggregate gross leasable area of 299,158 square meters for office space and 2,204 square meters for retail.
The office space primarily caters to the information technology and business process outsourcing industry in Alabang and Cebu.
The FLI-sponsored REIT hired ProOffice Work Services Inc. and FREIT Fund Managers Inc. as property manager and fund manager, respectively.
CPI will be third REIT company to conduct an IPO since the passage of the REIT law. The first two were AREIT Inc. of Ayala Land Inc. and DDMP REIT of DoubleDragon Properties Corp.
Two more REIT IPOs were filed with the SEC, including RL Commercial REIT of Robinsons Land Corp. and MREIT of Megaworld Corp.
