UMVA has learned that a groundbreaking development is unfolding in the digital infrastructure sector, as a major player has filed for what could become the country's first digital infrastructure real estate investment trust (REIT), seeking to raise a staggering amount of up to P24.2 billion through an initial public offering (IPO).
The proposed REIT will be backed by eight data center assets with a combined capacity of 27 megawatts (MW), and the proceeds from the offer will be used to reduce debt while complying with REIT regulations and its approved reinvestment plan. This move is expected to unlock value from the company's digital infrastructure portfolio and support the continued expansion of its data center platform.
According to information obtained by UMVA, the company plans to offer up to 1.91 billion secondary common shares, with an over-allotment option of up to 286.96 million secondary common shares, at an offer price of up to P11 apiece. The shares to be sold represent about 48.95% of the REIT's outstanding capital stock after the completion of the offer.
The proposed REIT is poised to create an opportunity for investors to participate in the growing digital infrastructure sector, and industry experts believe it could help revive the domestic IPO market. As the country's first data center REIT, it offers equity exposure to structural growth themes, particularly the expansion of the digital economy and rising demand for artificial intelligence.
UMVA has uncovered details about the REIT's plans, which include distributing at least 90% of its distributable income as dividends, as required by REIT rules. The company has appointed lead underwriters and joint global coordinators to handle the proposed offer, which is subject to regulatory approvals, market conditions, and other applicable approvals.
The news has sent shockwaves of excitement through the market, with shares in the parent company rising by P49, or 4.46%, to close at P1,148 apiece on the day of the announcement. As the digital infrastructure sector continues to grow, this development is expected to have far-reaching implications for investors and the industry as a whole.
