Malta Stock Exchange sees renewed activity with Hili Properties IPO

The Malta Financial Services Authority has approved a prospectus submitted by Hili Properties for a public offering of 38% of its shares and eventual listing on the Malta Stock Exchange.

Hili Properties had filed its application on 21 October and the company aims to raise around €49 million from the IPO. The funds will be used to finance new property acquisitions.

The move comes in the wake of renewed activity on the Malta Stock Exchange as another property management company, AX REal Estate, an offshoot of the AX Group, is also moving ahead with plans for an IPO.

Hili Properties is anticipating that €30 million will be utilised in terms of an acquisition of immovable property in 2022, whilst €19 million will be utilised to partially finance a property acquisition in 2023.

Hili Properties is in advanced discussions to acquire one commercial property in Poland and an industrial property in Lithuania, having a combined value in excess of €38 million. The company is also currently negotiating the price for the acquisition of additional commercial assets.

The acquisitions will be fully funded through a mix of readily-available own funds and financing from bank and parent company.

Hili Properties already owns and manages strategic commercial real estate for lease in Malta and several other European countries, including Estonia, Latvia, Lithuania, and Romania.

Its portfolio comprises dedicated business blocks and office space, grocery-anchored shopping centres, healthcare facilities, and property housing McDonald’s restaurants in key commercial districts. The current portfolio value exceeds €115 million.

Hili Ventures currently holds 299,999,990 shares of a nominal value of €0.20 each in Hili Properties. representing 99.99% of the issued share capital.

On the basis that the issue is fully taken up, following completion of the Issue, Hili Ventures will hold 62% of the issued share capital.

The net asset value per ordinary share of Hili Properties as of 30 June 2021 -  the date of the latest balance sheet before the IPO - is €1.52.

The adjusted net asset value per ordinary share - which also factors in the issue and allotment of 18,408,000 ordinary shares of one €1 and the redenomination of the issued share capital from 60 million ordinary shares of a nominal value of €1 each to 300 million ordinary shares of a nominal value of €0.20 - is of €0.29.

The issue period will open on 4 November and run until 26 November. The company expects to file an admission of the shares on the Malta Stock Exchange on 15 December 2021.

Trading of the New Ordinary Shares is expected to commence on 16 December 2021.

READ MORE on BusinessToday: Hili Properties aims to raise €49 million for new properties through IPO

AX Real Estate planning IPO and €40 million bond issue

Meanwhile, AX Group has announced that one of its subsidiaries - AX Real Estate Limited - is in the process of being converted into a public limited liability company (“AXRE”), and that it intends to submit an application to the Malta Financial Services Authority, for authorisation for admissibility to listing on the Official List of the Malta Stock Exchange.

33,333,333 ordinary ‘A’ shares of a nominal value of €0.125 per share will be offered for sale to the public, subject to an over-allotment option which, if exercised, would increase the offer to up to an aggregate of 50,000,000 ordinary ‘A’ shares of a nominal value of €0.125 per share.

€40,000,000 in 3.5% unsecured bonds of a nominal value of €100 per bond will be issued at par by AXRE, redeemable in 2031.