Premiere REIT cuts IPO price

Premiere Island Power REIT Corp., the second real estate investment trust (REIT) of the Villar Group, has reduced its offer price by 25 percent to P1.50 from the previous indicative price of P2 per share.

Premiere REIT has kept its offer size of 1.4 billion in secondary shares and 210 million overallotment option shares.

Net proceeds from the offer could reach up to P2.41 billion, down from the previous size of P3.09 billion, assuming the overallotment option is fully exercised. The selling shareholders will receive the full amount of the proceeds, which will be reinvested in the Philippines.

The company is envisioned to be the power and infrastructure REIT platform of Prime Asset Venture Inc., the holding firm of the businesses of Manuel Paolo A. Villar, the son of Manuel B. Villar Jr.

The said shares will be sold by its sponsors S.I. Power Corp. (SIPCOR) and Camotes Island Power Generation Corp. (CAMPCOR).

Premiere REIT’s offer period will run from November 28 to December 5, while its tentative listing date is on December 15. It will have a stock symbol of PREIT.

“REITs have become a popular asset class among investor in the last two and a half years. We welcome more listings in this space to expand the REIT options available to investors,” PSE President and CEO Ramon S. Monzon said.

Assuming the full exercise of the overallotment option, new investors will corner 42.6 percent of the issued and outstanding common shares of PREIT, while SIPCOR and CAMPCOR will retain a 57.4-percent interest. The company engaged China Bank Capital Corp. as its sole issue manager, underwriter and bookrunner for the offer. RCBC Capital Corp. will also serve as participating underwriter.