Purple Real Estate offers 2 billion shares via IPO, to list on NGX

Purple Real Estate Income Plc, a real estate investment platform, has opened a public offer of N10 billion equity to sell 2 billion ordinary shares at N5 per share.

The development is coming as the company finalised plans to list on the Nigerian Exchange (NGX), the regulated stock market managed by the Nigerian Exchange Group.

In a statement on Monday, Purple said its initial public offering opens on November 21, 2022, and will run for 25 working days, closing at midnight on December 23, 2022.

“From today, the group is offering up to 2 billion new ordinary shares of the company via a public offer for sale. Purple intends to use the proceeds from the offer to expand the group’s existing portfolio by diversifying its new lines of business and geographies to create more inclusive homeownership opportunities for Nigerians across the country,” the statement reads.

“The country’s real estate sector offers many prospects, particularly for consumers increasingly demanding all-inclusive living, blending high-quality lifestyle offerings with residential and commercial assets.”

Incorporated in 2014, Purple said it developed its flagship asset, PurpleMaryland (formerly known as the Maryland Mall), a market-shaping asset, which opened its doors to customers in 2016 — introducing the largest outdoor LED screen in West Africa. Purple has five directly controlled subsidiaries: Maryland Mall Limited, Purple Proptech Limited, Lekki Retailtainment Limited, Cible Media Limited, and Purple Asset Managers Limited, with full ownership of all subsidiaries.

In March 2022, under a Scheme of Mergers, Purple merged with its subsidiary, PREDCO. Backed by prominent investors, Purple recorded significant growth, with current total assets above N26 billion in 2021.

“Purple is an integrated business delivering a new generation of real estate, property and lifestyle services to households and companies in Nigeria. Continuing this mission with PurpleLekki, the new construction will nurture tech-empowered communities and offer best-in-class entertainment, retail and hospitality with its experiential offering PurplePlay. Leveraging proptech, Purple creates a unique ecosystem of interconnected products offline and in the cloud, with the primary objective of building productive atmospheres that enable social and economic mobility,” the statement added.

“Citadines, Purple’s new serviced apartment offering for occupiers, is part of a forward plan to build on its strong foundation to bring state-of-the-art homes, working infrastructure and purpose-built student accommodation to prime locations where there is an unmet need.”

Commenting on the IPO, Laide Agboola, chief executive officer, Purple, said: “Today is a significant step for the evolution of Nigeria’s real estate sector. By opening up participation in the real estate market to a new wave of Nigerian investors, Purple is delivering on our mission to democratise access to real estate in Nigeria. Additionally, by delivering on an expanded pipeline of new projects in a range of asset classes, we are providing new investment opportunities focused on stabilised, income-generating properties that respond to the fundamental changes to how communities in Nigeria want to work, consume and live.

 “In line with Purple’s ambition to provide retail investors with technology-enabled access to real estate as an asset class, we have made available the initial public offer online – http://purple.xyz/invest, while also making it available through our network of issuing houses and banks. We want every Nigerian to have the opportunity to participate as Nigeria’s real estate sector evolves.”

OFFER DETAILS

The Offer will be conducted through:

• Listing: The New Ordinary Shares will be listed on NGX under a new ticket symbol to be advised.
• Offer Size: ₦10 billion Equity Offer representing an IPO of 2,000,000,000 Ordinary Shares at N5 per share.
• Availability: The Offer will be available during the Validity Period which runs from 21 November 2022 to 23 December 2022.
• Method of Issue: Under the Offer, New Ordinary Shares will be sold via an Initial Public Offer (IPO); as approved by the SEC.
• Use of Proceeds: The net proceeds of the Offer will be disbursed to the Company for the purpose of debt refinancing, development of Lekki retailtainment, cost of Issue refinancing and to meet working capital needs whilst positioning Purple for the acquisition of income-producing real estate such as Mansard Place amongst others.

HOW TO BUY PURPLE SHARES

Interested investors find full detailed information at http://purple.xyz/invest or consult with your stockbroker or banker for further guidance.

• Investor proposition and all documents can be gotten from – http://purple.xyz/invest
• Investors can apply via the app platform: http://invest.purple.xyz