The Philippine Stock Exchange said over the weekend it approved the P14.7-billion initial public offering of DDMP REIT Inc., the real estate trust company owned by DoubleDragon Properties Corp. and the Yujuico family.
“We are optimistic that more property companies will list REITs in the exchange this year given the benefits to the REIT company, its investors and to the country’s economy because of the reinvestment in the Philippines rule for the REIT’s sponsor,” said PSE president and chief executive Ramon Monzon.
DDMP REIT will offer up to 5.942 billion common shares, with over-allotment option for another 594.24 million shares owned by DoubleDragon, Benedict Yujuico and Teresita Yujuico.
The shares will be sold at up to P2.25 apiece, with the final price to be announced on March 5.
DDMP intends to conduct the IPO from March 10 to 16, 2021 and list on the PSE on March 23.
It said at least 70 percent of the shares would be sold to overseas investors and the remaining 30 percent to local trading participants and domestic investors including local small investors.
Small investors can subscribe to the maiden share offering of DDMP REIT through the PSE Electronic Allocation System platform.
Assuming the over-allotment shares are fully exercised, DDMP REIT will have a public float of 36.67 percent.
After the IPO, DoubleDragon will retain a 44.33-percent interest, while the Yujuicos will own continue to own 9.65 percent and 9.35 percent, respectively.
DDMP has a portfolio of six office towers with retail components within DD Meridian Park in Pasay City. The company’s leasing spaces cater to a mix of tenants such as business process outsourcing companies, government agencies and corporate locators.
DDMP REIT is required under the law to distribute at least 90 percent of its annual distributable income as dividends. It will also have to reinvest the entire IPO proceeds in various projects in the country within one year from market debut.
DDMP REIT will be the second REIT company to conduct an IPO on the local bourse. The first was Ayala Land Inc.’s AREIT Inc., which was listed with the PSE last year.
Other companies that expressed interest to hold REIT offering were Filinvest Land Inc., Robinsons Land Corp. and Megaworld Corp.