IOIPG REIT reprices IPO at 91 sen, valuing trust at RM5 billion
The Malaysian public allocation was oversubscribed by 0.59 times, while the trust remains scheduled to list on Nov 25.
IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) will carry a valuation of RM5 billion after lowering its IPO price to 91 sen from 96 sen. Malaysian Issuing House Sdn Bhd said the change followed institutional bookbuilding and applies to both investor categories, retail and institutional.
The earlier valuation was RM5.3 billion. Retail applicants who secure units will receive a refund of five sen, with allotment notices to be issued by Nov 24. The trust’s planned debut on Bursa Malaysia’s Main Market is Nov 25.
For the Malaysian public allocation, 10,859 applications sought 175 million units, compared with an allocation of 110 million units. This represented oversubscription of 0.59 times. Demand differed between its two tranches:
- Bumiputera applicants submitted 1,745 applications seeking 18.24 million units against 55 million units available. The subscription rate was 0.33 times; unfilled units were reallocated through a clawback.
- The other public tranche attracted 9,114 applications seeking 156.76 million units against its allocation of 55 million units, producing oversubscription of 1.85 times.
IOI Properties Group shareholders accepted 604.18 million units under a restricted offer comprising 550.61 million units, with reported oversubscription of 1.1 times. The restricted pink form allocation of 55 million units was fully taken up, as was the institutional offer of up to 1.48 billion units.
Malaysian Issuing House said long-only investors, including insurers and government-linked investment companies, accounted for most institutional interest. Shareholder participation in the restricted offer was also considered by IOIPG REIT Management Sdn Bhd and IOI Properties Group Bhd when determining the institutional price.
