SEC Greenlights P3 Billion IPO of Villar Family's Power Unit

On Tuesday (November 15), the Securities and Exchange Commission (SEC) announced that it has approved the the initial public offering (IPO) of the real estate investment trust (REIT) sponsored by S.I. Power Corporation (SIPCOR) and Camotes Island Power Generation Corporation (CAMPCOR). 

For its IPO, Premiere Island Philippines Holding Corporation will change its name to Premiere Island Power REIT Corporation (PREIT) and will cover 3,288,669,000 common shares. 

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The offer includes up to 1.4 billion common shares priced at P2 per share, to be sold by SIPCOR and CAMPCOR, plus an overallotment option of up to 210 million common shares. That means net proceeds from the offer could reach up to P3.09 billion.

When the overallotment option is full exercised, new investors will own a total of 42.6 percent of the issued and outstanding common shares of PREIT, while SIPCOR and CAMPCOR will retain the remaining 57.4 percent. 

PREIT is seen to be the power and infrastructure REIT platform of Prime Asset Ventures, Inc. (PAVI), which is led by Paolo Villar, son of billionaire Manny Villar. The investment and holding company’s initial property portfolio consists of land and power plant assets utilized in the power generation projects of SIPCOR and CAMPCOR in Cebu and Siquijor, which have a total combined installed capacity of 21.2 megawatts. PAVI’s other companies and brands include Prime Water, Crystal Clear, First Peak Resources and Technologies, and ePrime Business Solutions, among others. 

As mandated by law, PREIT shall distribute at least 90 percent of its annual distributable income as dividends. 

PREIT intends to conduct the IPO from November 25 to December 2 and debut on the PSE on December 12, based on the latest timetable submitted to the SEC.

In 2021, Villar’s AllDay Marts went public, followed by his VistaREIT IPO in June 2022.

The company engaged China Bank Capital Corporation as sole issue manager, underwriter, and bookrunner for the offer. RCBC Capital Corporation will also serve as participating underwriter.

VFund Management Inc. and VProperty Management Inc. have been tapped as fund manager and property manager, respectively.