Filinvest REIT to IPO as Del Monte Philippines Postpones Inaugural Share Sale Again

Office owner Filinvest REIT Corp., controlled by the family of billionaire Mercedes Gotianun, IPO even as food manufacturing giant Del Monte Philippines withdrew its IPO due to market conditions volatile.

Building on the surge in demand for office space from the business process outsourcing industry, Filinvest REIT will proceed with its listing on the Philippine Stock Exchange on August 12 as scheduled, a representative of the company said. ‘company. Forbes Asia.

The office owner planned to raise up to 12.6 billion pesos ($ 254 million) through the IPO by selling up to 1.8 billion shares, including an over-allotment option of up to ‘to 163.4 million shares, at 7 pesos each. Details of the subscription for the first share sale, which closed yesterday, are not yet available.

Filinvest REIT owns and manages a portfolio of 16 office buildings in the Northgate Cyberzone, an IT industrial park developed by Filinvest Land in the southern suburb of Manila in Alabang, as well as an office tower in Cebu Cyberzone on the central island of the Philippines from Cebu. Assets are holding up despite the pandemic, with Filinvest REIT’s revenue from its 17 office buildings increasing 8% to 3.1 billion pesos in 2020 from the previous year.

The IPO of Filinvest REIT is one of the first two share sales scheduled for this month in the Philippines. Del Monte Philippines, known for its pineapple-based products and sauces, was scheduled to be listed on August 23 after the Securities and Exchange Commission approved the offer last month.

However, with the surge in Covid-19 infections in the Philippines and across the region triggering market volatility in recent weeks, parent company Del Monte Pacific has said it has decided to delay Del Monte’s IPO. Philippines.

“The board believes it is in the best interests of the company, its shareholders and potential investors to defer listing until conditions improve,” Del Monte Pacific said in a statement. Wednesday. “The Board of Directors remains committed to rating Del Monte Philippines and continues to strongly believe in the growth and resilience of its business. Meanwhile, the company will continue discussions with potential investors and strategic partners who have expressed interest during the IPO process. “

This is not the first time that Del Monte Pacific has ended the IPO of its Philippine subsidiary. In 2018, the company canceled the first share sale, citing unfavorable market conditions at the time.

Del Monte Philippines had planned to raise up to 44 billion pesos on the first sale of shares, including the over-allotment option. That makes it the country’s second IPO this year after Monde Nissin, which raised 55.9 billion pesos when it debuted in the market in June.

The Philippines is experiencing an IPO boom this year, with the country’s stock exchange registering more than 122 billion pesos in capital raised from IPOs and sale of existing shares in the first half of this year, surpassing 104 billion pesos. of pesos reported for the whole of 2020.