IPO as the first step in democratising access to real estate ownership

Purple Real Estate Income PLC ("PREIP" or "Purple"), Nigeria's breakthrough real estate investment platform, announces its Initial Public Offer opens today (21 November 2022). The Offer will be open for 25 working days, closing at midnight on 23 December 2022. This is the platform's first offering available to all investors and following completion, Purple shares will be listed on the main market of the Nigerian Exchange (NGX), the regulated market managed by Nigerian Exchange Group. 

Incorporated in 2014, Purple 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, by virtue of a Scheme of Merger, Purple merged with its subsidiary, PREDCO. Backed by prominent investors, Purple has recorded significant growth with current total assets in excess of ₦26.4 billion in FY2021.

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 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. 

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.

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 Offer launch, 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 - 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. 

The Process

The Offer will be open from midnight on 21 November. The Offer will close at midnight on 23 December. Interested investors can find full details of how to place orders and subscribe for shares as well as answers to a wide range of questions here

Applying for Shares

Interested investors should use the approved channels listed below to place orders and subscribe for shares. You can find full detailed information at here or consult with your stockbroker or banker for further guidance. 

• Investor proposition and all documents can be gotten from here
• Investors can apply via the app platform:  
• Receiving Agents: To submit an application for shares through the receiving agents - issuing houses and stockbrokers and banks, investors will need to:
• ­Complete an application form;
• ­Submit the completed application form and evidence of payment to a Receiving Agent; 
• ­For Banks, an application can be completed at the bank branches nationwide and payments processed at the same bank branch. Stanbic IBTC Bank Plc and First Bank of Nigeria Plc are receiving banks to the Offer.

A Bank Verification Number (BVN) is required to register and investors will need to have a CSCS account number to complete the transaction. If you do not have a CSCS account, your stockbroker can assist in setting one up for you, before completing your application. A CSCS account can also be created for you as part of the application process.

Issuing houses, stockbrokers, registrars and receiving banks

Transaction advisors who can assist with your application are as follows:

• Lead Issuing House: Emerging Africa Group
• Joint Stockbrokers to the Offer: CardinalStone Securities Limited, FBNQuest Securities Limited, and Stanbic IBTC Stockbrokers Limited
• Registrars: CardinalStone Registrars Limited
• Receiving Banks: FirstBank, Jaiz Bank, and Stanbic IBTC Bank

Receiving Agents 

A full directory of receiving agents registered and authorised by the Securities & Exchange Commission to receive your applications are as follows:

Banks

Stockbrokers and others