Kepwealth Property Philippines will be the first firm in the country to launch an original government offering (IPO) for 2019, with both the Philippine Stock Exchange (PSE) and the Securities and Exchange Commission (SEC) providing the green light.
The property leasing and asset management company will use the KPPI stock symbol. It is planned to sell up to P384.8 million common shares at a cost of up to P5.74 per share. The complete market capitalization of Kepwealth will be brought to P1.15 billion upon listing.
The offer duration for the shares will be from 5 to 9 August. They will be mentioned on the PSE’s tiny, medium, and emerging board.
BDO Capital and Investment Corporation will serve as the sole manager of issues, underwriter and sole bookrunner.
The firm plans to use the net proceeds to diversify its asset base and expand its office leasing portfolio by acquiring about 3,500 square meters of leasable room.
It will also disburse P245 million of net income to purchase office spaces mainly in Pasig City and Makati City, and P120 million in Davao City in the first half of 2020
Kepwealth currently owns 77 office condominium units with 98 leasable rooms in Kepwealth Center, a business building in Cebu City.
The firm expects to have an estimated 18,121 square meters of leasable room upon completion of its IPO-funded purchases. It also manages commercial, office, and residential units in Metro Manila.