Key Takeaways
- • IOI Properties Group launched an IPO for its property trust seeking about 2.1 billion ringgit ($515.7 million), ahead of a planned November 25 listing on Bursa Malaysia, according to Reuters.
- • 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 REIT at about 5.3 billion ringgit at a retail price of 96 sen per unit, per the prospectus.
- • The trust's portfolio comprises nine properties valued at 7.66 billion ringgit, including IOI City Mall and six Marriott-branded hotels.
- • IOI Properties forecasts a 6.6% distribution yield for the year ending December 31, 2027, and plans to retain up to 60% of trust units after listing.
Summary
IOI Properties Group launched an initial public offering for its property trust on Tuesday, seeking to raise about 2.1 billion ringgit ($515.7 million) ahead of a planned November 25 listing on Bursa Malaysia, according to Reuters. 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, according to the prospectus. IOI Properties is offering up to 2.2 billion units, including up to 715.6 million units for retail investors and up to 1.48 billion units for institutional investors. The company will receive the proceeds of the share sale but did not disclose how it plans to use the money.
The trust holds nine properties valued at 7.66 billion ringgit, including IOI City Mall, which the prospectus describes as Malaysia's largest retail mall, and six Marriott-branded hotels. IOI City Mall offers more than 2.5 million square feet of leasable space and had a committed occupancy rate of 97.9% as of May 31, the prospectus showed.
IOI Properties forecasts a distribution yield of 6.6% for the year ending December 31, 2027, and plans to retain up to 60% of the trust's units after the listing.
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, according to the prospectus. IOI Properties is offering up to 2.2 billion units, including up to 715.6 million units for retail investors and up to 1.48 billion units for institutional investors. The company will receive the proceeds of the share sale but did not disclose how it plans to use the money.
The trust holds nine properties valued at 7.66 billion ringgit, including IOI City Mall, which the prospectus describes as Malaysia's largest retail mall, and six Marriott-branded hotels. IOI City Mall offers more than 2.5 million square feet of leasable space and had a committed occupancy rate of 97.9% as of May 31, the prospectus showed.
IOI Properties forecasts a distribution yield of 6.6% for the year ending December 31, 2027, and plans to retain up to 60% of the trust's units after the listing.
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