The Securities and Exchange Commission (SEC) has considered favorably the initial public offering (IPO) of a real estate investment trust (REIT) sponsored by Filinvest Land, Inc. (FLI) for as much as P14.92 billion.
In its meeting on July 6, the Commission En Banc resolved to render effective the registration statement of Cyberzone Properties Inc. for a total of 4,892,777,994 common shares for listing on the Main Board of the Philippine Stock Exchange (PSE), subject to the company’s compliance with certain remaining requirements.
Cyberzone Properties, which will change its name to Filinvest REIT Corp., will offer up to 1,634,187,850 common shares at a price of up to P8.30 per share, with an overallotment option of up to 163,418,785 common shares. FLI currently owns the offer shares.
Assuming the overallotment option is fully subscribed, Cyberzone Properties will net P14.35 billion from the offer.
FLI will receive the entire proceeds of the offer, which shall be reinvested in the Philippines, pursuant to the Revised Implementing Rules and Regulations of Republic Act No. 9856, or the Real Estate Investment Trust (REIT) Act of 2009.
New investors will corner 36.74% of Cyberzone Properties’ issued and outstanding common shares, while existing shareholders will retain the remaining 63.26%, should the company exercise the oversubscription option.
As mandated by law, Cyberzone Properties shall distribute to shareholders at least 90% of its annual distributable income as dividends.
The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards. It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of the sale.
Cyberzone Properties expects to conduct the IPO from July 19 to 28 and debut on the PSE on August 6, based on the latest timetable it submitted to the SEC.
The company engaged BPI Capital Corporation and UBS AG, Singapore Branch as joint global coordinators and bookrunners for the offer. BPI Capital will also act, alongside China Bank Capital Corporation, as local lead underwriter while First Metro Investment Corporation and SB Capital Investment Corporation will serve as local co-lead underwriters.
Cyberzone Properties’ portfolio currently includes 17 office buildings with an aggregate gross leasable area (GLA) of 299,158 square meters for office spaces and 2,204 square meters for retail. The office spaces primarily cater to the information technology and business process outsourcing industry in Alabang and Cebu.
The FLI-sponsored REIT tapped ProOffice Work Services, Inc. and FREIT Fund Managers, Inc. as property manager and fund manager, respectively.