MREIT Inc., the real estate investment trust company owned by Megaworld Corp., priced its initial public offering at P16.10 per share, a 26.8-percent discount from its proposed maximum price range.
MREIT also reduced the offering to 844.3 million shares, with an over-allotment option for another 105.527 million. The company originally planned to sell up to 1.24 billion common shares.
MREIT is expected to raise P15.29 billion in proceeds.
BDO Capital and Investments Corp., one of the underwriters for the deal, said the shares were reduced to tighten pricing and ensure post listing demand.
“We could have kept the original number of offer shares but we wanted investors to buy after the IPO,” BDO Capital and Investments Corp. president Eduardo Francisco said.
MREIT president Kevin Tan said the company decided to price the deal at an attractive level to provide more upside to IPO investors who would be its long-term partners in the new journey.
“At this IPO price, MREIT will be offering investors an attractive dividend yield of 5.65 percent, to be distributed quarterly, and at the same time, we will be giving them exposure to high quality, fast-growing portfolio of assets,” Tan said.
Data showed that at the new issue size, the institutional tranche would be close to twice-oversubscribed while local demand was expected to build up further.
Net proceeds from the offering will be used by Megaworld to complete 21 projects all over the country.
MREIT’s initial portfolio covers 224,430 square meters of gross leasable area across 10 properties, with an aggregate appraised value of about P49.32 billion. Its properties are spread out across Taguig City, Quezon City and Iloilo City.
MREIT will be the fourth REIT company to hold an IPO.
Its offer period will be from Sept. 14 to 20 while listing was set on Sept. 30.
BDO Capital, Credit Suisse (Singapore) Limited, UBS AG Singapore Branch and DBS Bank Ltd. were tapped as joint global coordinators and bookrunners for the offer.
Credit Suisse, UBS, DBS, and CLSA will also serve as international bookrunners and BDO Capital as domestic lead underwriter.
MREIT also engaged First Metro Investment Corp., Investment & Capital Corp. of the Philippines, RCBC Capital Corp. and SB Capital Investment Corp. as domestic co-lead underwriters.