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AREIT IPO 2x oversubscribed

Ayala Land Inc. reported that its subsidiary AREIT, Inc., the first Philippine real estate investment trust, has completed its P12.34 billion initial public offering with shares two times oversubscribed.

 In a disclosure to the Philippine Stock Exchange, ALI said AREIT offered 456.88 million common shares (Firm Offer) at a price of P27.00 per share.

The IPO consisted of 47.86 million primary common shares and 409.02 million existing common shares offered by the Sponsor, Ayala Land, with an over-allotment option of up to 45.69 million shares.

Of the Firm Offer, 319.82 million shares (approximately 70 percent) were offered to qualified institutional buyers based in the Philippines and located outside the United States.

Meanwhile, 137.06 million shares (approximately 30% of the Offer) were offered to all REIT-eligible trading participants of the PSE and to local small investors.

“The landmark deal and the introduction of the new asset class was well-received by the market, with the deal more than fully covered with broad distribution across retail investors as well as international and domestic institutional investors,” ALI said.

It noted that, “The Firm Offer was two times oversubscribed. High-quality domestic and international institutional investors locked- in demand for the Philippines’ first REIT notwithstanding the continuing COVID-19 global pandemic.”

In addition, the TP tranche was also oversubscribed with the participation of 96 eligible Trading Participants. More than 3,300 investors participated in the Offer via the LSI tranche.

With the completion of the offer period, AREIT is targeting to list on August 13, 2020.

BPI Capital Corporation is the Sole Global Coordinator and Joint Bookrunner for the IPO while UBS AG Singapore Branch is the Sole International Bookrunner for the international tranche of the IPO.

BPI Capital Corporation, PNB Capital and Investment Corporation, and SB Capital Investment Corporation, are collectively Underwriters for the domestic tranche, and together with the Sole International Bookrunner, have entered into underwriting agreements for the respective tranches of the IPO.

Source: Manila Bulletin (

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