IOI Properties Group launched an IPO for its property trust on Tuesday, seeking to raise about 2.1 billion ringgit ($515.7 million), ahead of its planned November 25 listing on Bursa Malaysia.
Maybank Investment Bank, a joint principal adviser on the offering, said the IPO would be Malaysia’s largest-ever for a real estate investment trust.
The offering values IOIPG Malaysia Real Estate Investment Trust (REIT) at about 5.3 billion ringgit, based on a retail price of 96 sen per unit, its prospectus showed
The trust commands a portfolio of nine properties valued at 7.66 billion ringgit, including IOI City Mall, Malaysia’s largest retail mall, and six Marriott-branded hotels
IOI Properties is offering up to 2.2 billion units in IOIPG REIT. The sale includes up to 715.6 million units for retail investors and up to 1.48 billion units for institutional investors, according to the prospectus
The company will receive the proceeds of the share sale but did not disclose what it plans to do with the money
IOI City Mall had more than 2.5 million square feet of leasable space and a committed occupancy rate of 97.9% as of May 31, the prospectus showed
It forecasts a distribution yield of 6.6% for the year ending December 31, 2027. IOI Properties plans to retain up to 60% of the trust‘s units after the listing.
Reuters
