KUALA LUMPUR (Oct 1): IOI Properties Group Bhd (KL:IOIPG) said Bursa Malaysia Securities has approved the listing of its proposed RM7.58 billion IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) on the Main Market.
In a filing on Thursday, the property developer said Bursa Malaysia Securities had, via a letter dated Sept 30, approved the admission of IOIPG REIT to the Official List of Bursa Securities, and the listing and quotation of its 5.5 billion units under the REITs sector.
Bursa Malaysia Securities also approved the listing and quotation of up to 300 million new units to be issued as payment of management fees to IOI REIT Management Sdn Bhd — the REIT’s manager.
The approval marks another step forward for the listing of IOIPG REIT. IOI Properties received approval from the Securities Commission Malaysia (SC) last month for listing of the trust that will house RM7.58 billion worth of retail, office and hotel assets. The target was to complete the listing before the year ends.
Other assets include the IOI City Towers and PFCC Towers, as well as six hotels — Putrajaya Marriott Hotel, Le’ Meridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang.
It also plans to pay out at least 90% of its distributable income on a quarterly basis.
The RM7.58 billion acquisition will be satisfied through the issuance of 5.5 billion units at 90 sen each, alongside RM2.65 billion in cash to be funded through sukuk issuance.
As part of the proposed offering, 715.61 million units will be offered under the retail portion, including 550.61 million units through a restricted offer for sale to existing IOI Properties shareholders.
Eligible shareholders will be entitled to one REIT unit for every ten IOI Properties shares held on an entitlement date to be announced later. Another 55 million units will be allocated to eligible persons, while 110 million units will be made available to the Malaysian public.
The institutional offering, meanwhile, will comprise up to 1.48 billion units, including 687.5 million units for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti), with up to 796.89 million units allocated to other Malaysian and foreign institutional and selected investors.
On Sept 14, the company revised the planned use of proceeds. It cut the allocation for debt repayment to RM1.53 billion, or 32.9%, from RM3.04 billion, or 65.6%. It raised the allocation for project development, property investment and related activities to RM3.07 billion, or 66%, from RM1.55 billion, or 33.6%.
Total proceeds were put at RM4.66 billion, assuming the over-allotment option is not exercised, compared with RM4.62 billion previously.
Shares of IOI Properties were down by five sen or 1.5% to RM3.41 at Thursday’s trading day break, giving it a market value of RM18.8 billion. Year to date, its shares have increased by 28.68%.