Megaworld REIT moves debut; AllDay gets nod
By Keren Concepcion G. Valmonte, Reporter
THE real estate investment trust (REIT) sponsored by Megaworld Corp., MREIT, Inc., said it will be moving its listing at the Philippine Stock Exchange (PSE) to Friday, Oct. 1, from its previously scheduled Sept. 30 market debut as it completes the lodging of its shares.
Separately, the PSE approved the listing application of AllDay Marts, Inc., which is seeking to raise P6 billion from its initial public offering (IPO).
“We are grateful that the introduction of REITs to the market was met with much optimism and we are very pleased with MREIT’s overwhelming demand,” MREIT said in a statement on Wednesday.
“This is a testament to the confidence of the investors and a reflection of the Philippine capital market,” it added.
MREIT is offering 844.30 million common shares to the public for P16.10 apiece, with an overallotment option of up to 105.54 million shares. The final offer size is lower than the 1.08 billion shares and the 161.7 million shares overallotment option previously announced, while the offer price was also slashed from the P22 price ceiling it set.
MREIT President Kevin Andrew L. Tan previously said the company lowered its IPO price to attract more investors with its dividend yield, which is projected to be at 5.65% for 2022 and 6.1% for 2023.
Tan-led MREIT said the “overwhelming demand from investors” for its IPO has affected the completion of the lodging of its shares with the Philippine Depositary Corp., resulting in a one-day delay for its market listing.
“This also partly reflects the excess liquidity in the financial system in search for higher returns, particularly dividend yields that are much higher than bond yield, plus possible share price gains as more upside [is] provided by the recent offering price adjustment,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.
Upon listing, MREIT will be the fifth REIT at the local bourse and the fourth REIT to make its market debut this year.
Meanwhile, AllDay is hoping to raise P6 billion from the sale of up to 6,857,143,000 common shares for 80 centavos each, along with an overallotment option of 685,714,000 shares to be offered by AllValue Holdings Corp.
“The exchange’s approval of the conduct of the IPO and the listing of [AllDay’s] shares are subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said in a listing notice.
Majority of proceeds will be used to repay debt worth P4.10 billion, which was incurred to fund its past and ongoing store expansion, while the balance will be used for capital expenditures and to launch more stores.
AllDay is hoping to expand its store network to 45 by next year from 33 stores, and is eyeing a 100-store network by end-2026.
AllDay’s offer period will run from Oct. 18 until Oct. 25, while its tentative listing date is slated for Nov. 3. It will be listed under the ticker symbol “ALLDY.”
“We are pleased that we will be welcoming AllDay Marts as an addition to our roster of listed firms and we are glad that it chose the equities market to raise capital for its financial requirements and expansion plans,” PSE President and CEO Ramon S. Monzon said in an e-mailed statement.
RCBC’s Mr. Ricafort said the capital markets remain attractive for both issuers and investors.
“While financing costs still relatively lower, though rising recently, for issuers, while returns or yields becoming more attractive for investors amid the need to tap or deploy the excess liquidity in the financial system and generate more investments, jobs, and other business/economic activities to further support recovery prospects for [the] economy,” he explained.
For the last quarter of the year, analysts said a further reopening of the economy can help support the recovery of sales, income, among others, of listed companies, on top of the progress in the country’s vaccination program.
“Consumer spending, which accounts for about 70% of the economy, would also pick up in [the fourth quarter], especially in view of the Christmas season, which accounts for a significant share of sales of many businesses and industries,” Mr. Ricafort said in a Viber message on Sept. 24.
Meanwhile, Summit Securities, Inc. President Harry G. Liu said he expects a correction in the market because of its overbought condition.
“In the short to medium term, I still expect a correction to set in because of the overbought condition that it prevents a correction because there are certain industries that are positive for the moment, like telecommunications,” Mr. Liu said in a phone call on Sept. 24.