Kuala Lumpur:IOI Properties Group Bhd's real estate investment trust arm, IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT), is targeting to raise RM2.1 billion through its initial public offering (IPO). The IPO is priced at 96 sen per unit and precedes its listing on the Main Market of Bursa Malaysia Bhd scheduled for November 25.
According to BERNAMA News Agency, IOIPG REIT is anticipated to achieve a market capitalisation of roughly RM5.3 billion upon listing, with total debts estimated at RM2.65 billion. This equates to a gearing ratio of 34.1 percent based on its total asset value of approximately RM7.79 billion.
The IPO involves offering up to 2.2 billion units, consisting of a retail offering of 715.6 million units and an institutional offering of up to 1.48 billion units. The retail offering includes 550.6 million restricted offer units for IOIPG shareholders, 55 million units for eligible directors, employees, and business associates, and 110 million units for the Malaysian public, with 55 million reserved for bumiputera investors.
The institutional offering allocates 687.5 million units to bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI) and up to 796.9 million units to other Malaysian and foreign institutional investors, as well as selected investors under US Securities Act exemptions.
Datuk Lee Yeow Seng, IOIPG group CEO, highlighted the group's asset pipeline, including IOI Mall Puchong, IOI Mall Damansara, and IOI Mall Kulai, with a combined net lettable area nearing two million square feet. Upcoming projects include IOI Rio City in Puchong and two hotels, W Langkawi and The Westin.
Lee stated that asset injections into the REIT depend on property maturity and necessary evaluations. The group is concentrating on retail malls and commercial offices, excluding direct ventures into data centre REITs due to a lack of expertise.
IOIPG REIT's initial portfolio comprises nine freehold assets across Selangor, KL City Centre, and Penang, valued at about RM7.66 billion, including six Marriott International hotels and two office developments.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd lead the IPO as joint principal advisers, with multiple banks participating as bookrunners and underwriters.