Premiere Island Power REIT Corp., Villar Group’s second Real Estate Investment Fund (REIT), cut its offer price by 25 percent to 1.50 pesos from its previous target price of 2 pesos per share.
The Premiere REIT maintained its offer size at 1.4 billion secondary shares and 210 million option shares.
The net proceeds from the offer could reach 2.41 billion pesos, up from the previous 3.09 billion pesos, assuming the option for the total amount is fully exercised. The selling shareholders will receive the full amount of the proceeds, which will be reinvested in the Philippines.
The company is expected to be the energy and infrastructure REIT platform for Prime Asset Venture Inc., the holding firm of the business of Manuel Paolo A. Villar, son of Manuel B. Villar Jr.
The said shares will be sold by its sponsors SI Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR).
The Premiere REIT offer period will run from November 28 to December 5, with a tentative listing date of December 15. It will have the PREIT stock symbol.
“REITs have become a popular asset class among investors over the past two and a half years. We welcome more listings in this space to expand the REIT opportunities available to investors,” said PSE President and CEO Ramon S. Monzon.
Assuming full exercise of the share option, new investors will receive 42.6% of the issued and outstanding shares of PREIT’s common stock, while SIPCOR and CAMPCOR will retain 57.4% of the shares. The company raised China Bank Capital Corp. as sole issue manager, underwriter and bookrunner of the offering. RCBC Capital Corp. will also act as a participating underwriter.