26.3 C
Manila
Friday, January 24, 2020
Home Business Corporate News Kepwealth sets IPO offer price at P5.74

Kepwealth sets IPO offer price at P5.74

 

KEPWEALTH Property Phils. Inc. has set the final offer price for its planned initial public offering (IPO) at the highest end of its target range.

In a filing on Friday, Kepwealth said it set that price at P5.74 apiece, which would allow it to raise as much as P385 million. This would represent 33.34 percent of its total outstanding stock.

Both the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission have approved the company’s IPO plan late last month.

Kepwealth plans to use the proceeds to fund key property and asset acquisitions to ramp up its leasing portfolio. In particular, it will disburse P245 million of the net proceeds to acquire office spaces, primarily in Pasig and Makati cities; and P120 million in Davao City within the first half of 2020.

Kepwealth said the properties it would buy would reduce the concentration risk of its current operations in Cebu City and create additional recurring revenue streams once leased out to tenants.


It will invest the net proceeds in short-term liquid investments, such as short-term government securities, bank deposits and money-market placements, which are expected to earn at prevailing market rates. If these incur losses, any shortfall would be financed by internally generated funds.

Offer period is from August 5 to 9, while the official listing on the PSE’s SME (small and medium enterprises) board is on August 19, to be traded under the ticker symbol “KPPI.”

Kepwealth tapped BDO Capital and Investment Corp. as the sole issue manager, lead underwriter and sole bookrunner for the transaction.

‘NewsHour’ host and debate moderator Jim Lehrer dies at 85

NEW YORK: Jim Lehrer, longtime host of the nightly PBS “NewsHour” whose serious, sober demeanor made him the choice to moderate 11 presidential debates...

Duterte threatens to end PH-US deal over visa cancellation of allied senator

PRESIDENT Rodrigo Duterte on Thursday threatened to terminate the Visiting Forces Agreement (VFA) between the Philippines and the United States (US) if Washington does...

Duterte okays probe of Ayala-UP technohub deal

PRESIDENT Rodrigo Duterte has given the green light for the review of the lease contract between the Ayala Group and the University of the...

SWS: Filipino families who considered themselves poor up in Q4 of 2019

MORE Filipino families, especially in Metro Manila, considered themselves poor in the last quarter of 2019, according to the latest Social Weather Stations (SWS)...

‘High’ probability of Taal eruption remains despite weakened state — Phivolcs

THE Philippine Institute of Volcanology and Seismology (Phivolcs) said on Thursday that there was still a “high” probability of a “hazardous eruption” by Taal...

Today’s Front Page January 24, 2020

Today’s Front Page January 24, 2020