IOIPG REIT targets RM2.1 billion IPO ahead of Nov 25 listing
The trust expects a market capitalisation of approximately RM5.3 billion when it joins Bursa Malaysia’s Main Market.
IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT), the real estate investment trust arm of IOI Properties Group Bhd, is targeting RM2.1 billion through an initial public offering priced at 96 sen per unit. Its debut on Bursa Malaysia Bhd’s Main Market is scheduled for Nov 25.
Following the prospectus launch on Nov 3, IOIPG said investors would be offered up to 2.2 billion units. The retail portion accounts for 715.6 million units, while up to 1.48 billion units are earmarked for institutional investors.
Within the retail portion, IOIPG shareholders have been allocated 550.6 million units. Another 110 million units are available to the Malaysian public, including 55 million reserved for bumiputera investors. The institutional portion includes 687.5 million units for bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI).
The trust estimates total indebtedness at RM2.65 billion and gearing at 34.1 per cent, against total assets valued at some RM7.79 billion. Its starting portfolio consists of nine freehold assets across Selangor, KL City Centre and Penang, appraised at approximately RM7.66 billion.
IOIPG group chief executive officer Datuk Lee Yeow Seng identified IOI Mall Puchong, IOI Mall Damansara and IOI Mall Kulai as assets approaching readiness for possible inclusion in the trust. Together, they have close to two million square feet of net lettable area.
Lee said no timetable had been set for potential injections. Properties would need to mature before being proposed, with evaluation and board approval also required. He added that the group would maintain its focus on retail malls and commercial offices rather than enter data centre REITs directly, citing a lack of core expertise.
