Industry

SEC Greenlights VistaREIT and Raslag Corp. IPOs

Investment options alert.
ILLUSTRATOR WARREN ESPEJO

VistaREIT has gotten the nod of the Securities and Exchange Commission for an initial public offering (IPO) worth up to P9.178 billion. VistaREIT is the real estate investment trust of billionaire Manny Villar, the country’s richest person.

The SEC also approved the registration statement of Raslag Corp., a renewable energy company, for its own IPO worth up to P700 million.

VistaREIT filed its IPO last March and plans to offer up to 3,337,500,000 common shares at a price of up to P2.50 per share plus an overallotment option of up to 333,750,000 common shares.

Should the overallotment option be fully exercised, VistaREIT is expected to net P8.79 billion from the offer.

According to the SEC, new investors will corner 48.95 percent of VistaREIT’s issued and outstanding common shares, while existing shareholders will retain the remaining 51.05 percent, should the company exercise the oversubscription option. 

VistaREIT will distribute to shareholders at least 90 percent of its annual distributable income as dividends as mandated by the REIT law.

The company will conduct the IPO from May 10 to 16 and actual listing date on the Philippine Stock Exchange is on May 26.

VistaREIT’s portfolio includes 10 community malls and two office buildings with a gross leasable area of 256,403.95 square meters. The company’s malls are located in Metro Manila, Cavite, Rizal, Bulacan, Pampanga, and Cebu, while its office buildings are in Taguig and Bacoor, Cavite. 

The company engaged BDO Capital & Investment Corporation, China Bank Capital Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation as joint lead underwriters for the offer, with Abacus Capital and Investment Corporation as participating underwriter.

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Meanwhile, Raslag Corp. will offer to the public up to 350 million common shares priced at up to P2 per share, with an overallotment option of up to 52.5 million common shares to be offered by selling shareholder J Ten Equities, Inc. 

Raslag is a domestic renewable energy developer founded by Peter G. Nepomuceno of the Nepomuceno family in Angeles City, Pampanga, and Conrado D. Pecjo, the business development manager of Angeles Power, Inc. It currently focuses on the development of solar power projects, two of which are currently operating in Pampanga.

The company expects to net P648.08 million from the offer, while the selling shareholder will receive the proceeds from the exercise of the overallotment option, which could reach up to P105 million.

According to the company, proceeds from the offer will be used to finance the company’s solar projects, namely RASLAG-4, a 35.1-megawatt (MW) solar photovoltaic plant in Magalang, Pampanga, and RASLAG-5, with an approximate capacity of 60MW.

The offer period for Raslag’s shares will run from May 24 to 30, with the listing scheduled on June 6. 

The company tapped China Bank Capital Corporation as sole issue manager, sole underwriter, and sole bookrunner for the offer.

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Paul John Caña
Associate Editor, Esquire Philippines
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