PLDT applies for P24.2-B data center REIT IPO

MANILA, Philippines – PLDT Inc. has taken the next step toward listing its data center assets, filing for a real estate investment trust (REIT) offering that could raise up to P24.2 billion and pave the way for the Philippines’ first data center public offering.

In a disclosure on Monday, the telecommunications (telco) giant said its subsidiary, Vitro Inc., had submitted a registration statement and REIT plan to the Securities and Exchange Commission (SEC) for the planned listing.

READ: PLDT preps data center unit for $400-M REIT IPO by Q4

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Under the offering, PLDT’s technology arm, ePLDT, targets to sell up to 1.91 billion secondary shares, with an overallotment option of up to 286.96 million shares, at a price of up to P11 per share.

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At that price, the transaction could raise gross proceeds of as much as P24.2 billion.

According to PLDT, the shares to be sold would represent about 48.95 percent of Vitro REIT’s outstanding capital stock after the offering, assuming full exercise of the overallotment option.

As announced earlier by PLDT chair Manuel Pangilinan, the proposed REIT’s initial portfolio will consist of eight operational data centers with a combined IT-ready capacity of about 24 megawatts.

These facilities serve enterprise, hyperscale and cloud customers through a network of Tier 2 and Tier 3 data centers located across the country, the telco said.

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“Today’s filing marks an important step in our efforts to unlock value from PLDT Group’s digital infrastructure portfolio while supporting the continued expansion of Vitro REIT’s data center platform,” said Victor Genuino, president and CEO of ePLDT and Vitro REIT.

“As demand for secure, resilient and scalable digital infrastructure continues to grow, the proposed Vitro REIT IPO creates an opportunity for investors to participate in the growth of one of the country’s most critical digital infrastructure sectors,” Genuino added.

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Pangilinan had said that the initial eight facilities could command a valuation of between $600 million and $800 million. Its Santa Rosa data center alone, which is excluded from the REIT, could be valued at roughly $1 billion.

READ: PLDT eyes REIT listing for data center business

This planned offering follows the SEC’s issuance earlier this year of revised REIT rules that expanded the definition of eligible income-generating real estate assets to include roads, railways, airports and air navigation facilities, ports, information and communications technology infrastructure, energy infrastructure assets and data centers.

That regulatory change essentially paved the way for Vitro REIT to become the first digital infrastructure REIT in the Philippines.

PLDT earlier said proceeds from the transaction would help fund expansion and pare down debt.

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UBS AG Singapore Branch and BPI Capital Corp. are serving as joint global coordinators and joint bookrunners for the proposed offering, while also acting as the lead international and domestic underwriters, respectively. INQ