CEBU - The Securities and Exchange Commission (SEC) has considered favorably the initial public offering (IPO) of a real estate investment trust sponsored by S.I. Power Corporation (SIPCOR) and Camotes Island Power Generation Corporation (CAMPCOR).
According to SEC, its en banc resolved to render effective the registration
statement of Premiere Island Philippines Holding Corporation, which will change
its name to Premiere Island Power REIT Corporation (PREIT) covering
3,288,669,000 common shares subject to the company’s compliance with certain
remaining requirements.
The offer will include up to 1.4 billion common shares priced at P2 per
share, to be sold by SIPCOR and CAMPCOR, plus up to 210 million common shares
as part of the overallotment option. Net proceeds from the offer could reach up to P3.09 billion, assuming the
overallotment option is fully exercised.
The selling shareholders will receive the full
amount of the proceeds, which shall be reinvested in the Philippines, pursuant
to the revised implementing rules and regulations of Republic Act No. 9856,
otherwise known as the Real Estate Investment Trust (REIT) Act of 2009.
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.
PREIT intends to conduct the IPO from Nov. 25 to Dec. 2 and debut on the
Philippine Stock Exchange (PSE) on Dec. 12, based on the latest timetable
submitted to the SEC. 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.
PREIT is seen to be the power and infrastructure REIT platform of Villar-led
Prime Asset Ventures, Inc. The 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. As mandated by law, PREIT shall distribute at least
90 percent 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. (Cebu Examiner)
