First REIT listed in the Philippines
According to AREIT's IPO/listing guidelines posted on the PSE website on July 17, AREIT has about 456.88 million common shares (of which 10 pesos per share) in IPO (of which about 47.86 million are new shares) to sell. It has a maximum of approximately 45.69 million additional options. If this additional option is fully exercised, the number of shares sold will be 500,257 shares.
However, the number of new shares issued was only about 47.86 million, most of which was the sale of existing shares of AREIT owned by Ayala Land. The final IPO price for the AREIT was decided on July 22, at 27 pesos per share. The total IPO is 13.570 million pesos, but it is a sale mainly of existing shares, and the new procurement amount is only 1.290 million pesos. The IPO period was from July 27th to August 3rd. The floating stock ratio after the listing is estimated to be 49%. (Quoted from Philippine Economic, Financial and Investment Information)
Ten years after the legislation was established to allow REITs to be listed in the Philippines, the long-awaited REIT in the Philippines was finally born. Contrary to that high expectation, although the price temporarily exceeded the open price on the first day, the closing price was 24.90, which fell by 2.10 pesos from the open price to -7.78%.
Expectations were high, but it was a turbulent dawn that represented the harsh future real estate market conditions that were greatly affected by the new Coronavirus.