The fourth real estate investment trust (REIT) to list on the Philippine Stock Exchange this year got off to a tepid start, coming after a string of weak IPO debuts.
Robinsons Land-sponsored RC Commercial REIT hit an intraday high of P6.55 before falling back by the end of trading to P6.46 each share or just once centavo higher than its offer price.
RCR, nevertheless, raised P23.5 billion in a public offering that drew strong interest from local and foreign institutional investors. This includes the full exercise of the underwriters option to purchase additional RCR shares to meet the robust demand.
This is the biggest capital raised among the PSE-listed REITs — AREIT, DDMP REIT, and FilREIT.
PSE president and CEO Ramon S. Monzon said the strong market reception to RCR’s IPO “clearly indicates the trust and confidence of investors in the property development track record, professional management, and vision of RCR’s sponsor, Robinson’s Land, and in the ability of RCR to sustain its high dividend yield, estimated at 5.57 percent in 2021 and 5.96 percent in 2022.”
Finance Secretary Carlos Dominguez III, for his part, said: ” This public offering is another vote of confidence that the Philippine economy is on track to a solid recovery from the difficulties brought about by the pandemic.”
“The strong performance of our REIT listings underscores the thirst of the market for secure and profitable investments. It affirms the REIT as a powerful instrument for capitalizing property development in the country. Most of all, the investments attracted by REIT confirm investor optimism in our economy,” he said.