KUALA LUMPUR (Oct 12): IOIPG Malaysia REIT has entered into an underwriting agreement with a group of six financial institutions for its initial public offering (IPO) on the Main Market.
The underwriting agreement with Maybank Investment Bank Bhd, AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, RHB Investment Bank Bhd and UOB Kay Mian Sdn Bhd was announced in a statement on Monday.
The group is to underwrite 165 million offer units under the public offering and restricted pink form offering, subject to the clawback and reallocation provisions.
Maybank and AmInvestment were already assigned as the joint principal advisers, global coordinators, bookrunners, managing underwriters and underwriters.
IOIPG Malaysia REIT’s listing was approved by the Securities Commission Malaysia in August and by Bursa Malaysia Securities in September. The listing is slated to be completed by the end of this year.
Its prospectus is expected to be launched in the fourth quarter this year.
The IPO is made up of up to 2.2 billion units, including a retail offering of 715.61 million offer units and an institutional offering of up to 1.48 billion offer units.
The offering makes up 40% of the total issued fund size of 5.5 billion units at 90 sen apiece. The REIT plans to pay out at least 90% of its distributable income on a quarterly basis.
IOIPG Malaysia REIT invests directly and indirectly in retail, commercial, office and industrial properties across Malaysia.
Its nine-asset portfolio as of May 31 this year is valued about RM7.66 billion.
It is anchored by IOI City Mall — Malaysia's largest retail mall — and includes six hotels under the Marriott International family of brands and two office developments in Selangor, Kuala Lumpur city centre and Penang.
The listing comes as IOI Properties is set to acquire Shenton House in Singapore through the purchase of Shenton 101 Pte Ltd from group CEO and major shareholder Datuk Lee Yeow for a nominal sum of S$1 and to settle S$217.06 million in shareholder advances that Lee injected into Shenton 101 to buy the 25-storey commercial property.
At time of writing, shares of IOI Properties are down 2 sen or 0.6% at RM3.33, valuing the group about RM18.34 billion
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