THE Securities and Exchange Commission has approved the initial public offering (IPO) of Premiere Island Holding Corp., which is expected to raise up to P3.09 billion from its market debut.
The company is envisioned to become the power and infrastructure real estate investment trust (REIT) of Villar-led Prime Asset Ventures, Inc. Its name will be changed to Premiere Island Power REIT (PREIT).
In a press release, the SEC said that the commission en banc rendered effective the registration statement of PREIT during a meeting on Nov. 10. The company registered around 3.29 billion common shares subject to its compliance with some requirements.
The IPO shares will be sold by the company’s sponsors — S.I. Power Corp. and Camotes Island Power Generation Corp. — and will include 1.4 billion common shares priced at P2.00 each.
PREIT expects proceeds from the offering to reach P3.09 billion should the over-allotment option of up to P210 million common shares be fully exercised.
“The selling shareholders will receive the full amount of the proceeds, which shall be reinvested in the Philippines,” the SEC said, referring to provisions under the Revised Implementing Rules and Regulations of Republic Act No. 9856 or the REIT Act of 2019.
PREIT’s IPO is set to be conducted from Nov. 25 to Dec. 2 with its stock market debut slated on Dec. 12. China Bank Capital Corp. will be the sole issue manager, underwriter, and book-runner, while RCBC Capital Corp. will serve as a participating underwriter.
PREIT tapped VFund Management, Inc. as its fund manager and VProperty Management, Inc. as its property manager.
PREIT’s initial portfolio will comprise land and power plant assets in the power generation projects of S.I. Power and Camotes Island Power with a combined capacity of 21.2 megawatts.
“As mandated by law, PREIT shall distribute at least 90% of its annual distributable income as dividends,” SEC said.
Distributable income is the company’s adjusted net income for unrealized gains and losses and impairment losses. It does not include proceeds from the sale of the REIT’s assets that are reinvested in the REIT. — Justine Irish D. Tabile