Kepwealth Property gets regulatory nod for $7.5m PSE listing

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

Kepwealth Property Phils, a former subsidiary of Singapore-based Keppel Corporation, has received the go-ahead from the Philippine Stock Exchange (PSE) for a listing in which it seeks to raise up to $7.5 million.

In an announcement, PSE said it has approved Kepwealth’s application for an initial listing of up to 201.1 million common shares.

The company intends to offer 67 million common shares through the IPO on the Small, Medium and Emerging Board of the PSE. It seeks to sell the shares at 5.74 Philippines pesos ($0.11) each for a total of 384.8 million Philippine pesos ($7.5 million).

Proceeds from the offering will be used to fund key property acquisitions for leasing purposes, Kepwealth said.

The remaining 134 million common shares will be held by Kepwealth’s existing shareholders and will be subject to a one-year lockup from the listing date.

“The exchange’s approval of the listing of the company’s shares is subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said.

Kepwealth Property, which owns the majority of a mixed office and residential building in Cebu, was a subsidiary of Keppel Corporation. In 2017, Keppel divested a 100 per cent stake in Kepwealth to Euro Capital Land for 793.6 million pesos ($15.5 million),

Currently, Euro Capital owns 12 per cent of the company, making it its third-largest shareholder. Crown Castle Holdings owns a 56.4 per cent stake, while We Serve 24 Hours owns 25.6 per cent.

Kepwealth’s shares are expected to be listed on the PSE on August 19 and will trade under the symbol KPPI.

The PSE has long been considered Southeast Asia’s worst-performing bourse. After falling 15 per cent last year, the exchange hopes to recover this year with a string of listings ahead, including the $405-million IPO of ALL Home Corp, the home improvement chain of the country’s richest person, Manuel B. Villar Jr.