The Securities and Exchange Commission said Tuesday it approved the P3.2-billion initial public offering of Premiere Island Power REIT Corp., a power and infrastructure real estate investment trust under the Villar Group.
PREIT is sponsored by Prime Asset Ventures Inc., the holding firm of Manuel Paolo Villar, the eldest son of billionaire Manuel Villar.
PREIT plans to sell 1.4 billion secondary shares priced at P2 apiece and another 210 million secondary shares as part of the overallotment option, according to the SEC documents.
PAVI subsidiaries S.I. Power Corp. and Camotes Island Power Generation Corp. are the selling shareholders.
PREIT said the shareholders would reinvest the IPO proceeds in various projects as provided for under the revised implementing rules and regulations of Republic Act No. 9856 or the Real Estate Investment Trust Act of 2009.
PREIT will have a public float of 42.6 percent while SIPCOR and CAMPCOR will retain a 57.4 percent interest in case the company exercises the overallotment option.
PREIT plans to conduct the IPO from Nov. 25 to Dec. 2, based on the latest timetable the company submitted to the SEC.
The shares will be listed on the main board of the Philippine Stock Exchange on Dec. 12.
The company engaged China Bank Capital Corp. as the sole issue manager, underwriter and bookrunner for the offering. RCBC Capital Corp. will also serve as a participating underwriter.
The company’s initial property portfolio consists of land and power plant assets utilized in the power generation projects of SIPCOR and CAMPCOR in Cebu and Siquijor, which have a combined installed capacity of 21.2 megawatts.
It aims to be among the leading diversified power and infrastructure REITs in the Philippines in terms of portfolio, profitability, growth, sustainability and dividend yield.
It also plans to venture into renewable energy.
PREIT, under the law, should distribute at least 90 percent of its annual distributable income as dividends.