MANILA, Philippines – Kepwealth Property Philippines will be the country's first company to initiate an initial public offering (IPO) for 2019, with both the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) giving the green light.
The property leasing and asset management company will use the stock symbol KPPI.
It is planning to sell up to P384.8 million worth of common shares at a price of up to P5.74 per share. Kepwealth's total market capitalization will be brought to P1.15 billion upon listing.
The offer period for the shares will be from August 5 to 9. They will be listed on the small, medium, and emerging board of the PSE. (READ: Stocks to Watch: 3 property stocks to consider buying)
BDO Capital and Investment Corporation will serve as the sole issue manager, underwriter, and sole bookrunner.
"It may have taken some time before we had our first IPO but I am pleased that KPPI is embarking on its maiden share sale. I hope that this move will encourage other companies that pushed back their IPOs to revisit their plans and consider the stock market as an avenue for capital raising," said PSE president and chief executive officer Ramon Monzon.
The company plans to use the net proceeds to diversify its asset base and expand its office leasing portfolio with the acquisition of about 3,500 square meters of leasable space.
It will also disburse P245 million of the net proceeds to acquire office spaces primarily in Pasig City and Makati City, and P120 million in Davao City within the first half of 2020.
At present, Kepwealth owns 77 office condominium units with 98 leasable spaces in Kepwealth Center, a commercial building in Cebu City.
Upon completing its IPO-funded acquisitions, the company expects to have an estimated 18,121 square meters of leasable space. It also manages commercial, office, and residential units in Metro Manila. – Rappler.com