FIlinvest REIT Corp. (FILREIT) closed its maiden trading day up P0.02 at P7.02 from its initial public offering of P7 apiece.
The Filinvest Land Inc.-sponsored real estate investment trust (REIT) made its debut in the stock market amid the resurgence of risk aversion as the seasonal ghost month takes into effect and concerns about the resurgent new coronavirus disease 2019 (COVID-19) infection, Delta strain, rise. It raised FILREIT offered to the public an initial 1.63 billion common shares and another 163.42 million shares covering the greenshoe option in an offer that ran July 26 to August 3, 2021.
About 70 percent of the offer shares were offered to institutional buyers based in the Philippines overseas, except the US.
The proceeds raised from the IPO will be used by the company to acquire nine office buildings, three retail buildings, five mid-rise residential buildings, industrial lots, raw land, and expansion of the district cooling system.
FILREIT’s listing earned praise from regulators as it displayed courage in the challenging market environment.
“The stock market debut of FILREIT during the enhanced quarantine period demonstrates the stability and resilience of real estate investment trust as an asset class….This speaks of the company’s confidence in the quality of its REIT offering and its optimism of the country’s imminent recovery from the pandemic. This confidence can only stem from the sponsor Filinvest Land Inc.’s decades of experience of going through and overcoming economic headwinds and in the process creating an enviable track record in property development and management,” said Ramon Monzon, Philippine Stock Exchange president.
