AREIT’s initial public offering was two times oversubscribed, reflecting investors’ hunger for yield in these difficult times and unleashing a potential new funding avenue for struggling property developers.
“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 in a statement.
This marks the country’s first REIT IPO.
AREIT is estimated to raise P13.6 billion from the sale of 456.883 million common shares, consisting of 47. 864 million primary shares and 409.019 million existing shares by parent firm, Ayala Land. An over-allotment option of up to 45.688 million shares had been set aside for the greenshoe option.
The shares, which were sold at P27 apiece, will start trading on the stock exchange on Aug.13.