KUALA LUMPUR (Nov 12): IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) has trimmed its initial public offering (IPO) price to 91 sen for both retail and institutional investors.
The IPO price revision from 96 sen per share followed bookbuilding for the institutional offering, according to a statement issued by Malaysian Issuing House Sdn Bhd on Thursday.
It will refund five sen to successful applicants under the retail offering.
“Against a backdrop of market uncertainties, the institutional offering successfully secured interest predominantly from notable long-only investors, including government-linked investment companies and insurers,” the statement read.
“The participation of these long-only institutions reflects their confidence in the quality of IOIPG REIT’s portfolio and its access to IOIPG’s robust pipeline of assets.
“In determining the institutional price, the IOIPG REIT Management Sdn Bhd and IOI Properties Group Bhd (KL:IOIPG) also recognised the level of support shown by IOI Properties Group shareholders through their participation in the restricted offering. The institutional price also offers IOI Properties Group’s shareholders the opportunity to invest in IOIPG REIT at the pro forma net asset value of IOIPG REIT and participate in the long-term growth of IOIPG REIT,” it added.
The revised IPO price values IOIPG REIT at RM5 billion, down from RM5.3 billion.
Successful applicants will be notified of their allotments by Nov 24. IOIPG REIT is slated to list on the Main Market of Bursa Malaysia on Nov 25.
Meanwhile, its IPO was oversubscribed by 0.59 times under the Malaysian public portion. The public tranche, comprising 110 million offer units, received 10,859 applications for 175 million units.
The Bumiputera portion, comprising 55 million units, was undersubscribed. The tranche's subscription rate stood 0.33 times — 1,745 applications for 18.24 million units. The balance was clawed back and reallocated.
The other Malaysian public portion, comprising the same number of units, received 9,114 applications for 156.76 million units, representing an oversubscription rate of 1.85 times.
For the restricted offering to shareholders of IOI Properties Group, comprising 550.61 million units, it received valid acceptances for 604.18 million units, representing an oversubscription rate of 1.1 times.
Units under the restricted pink form offering to eligible directors, employees and business associates, comprising 55 million units, were fully subscribed. The institutional offering, comprising up to 1.48 billion units, was also fully subscribed.
Maybank Investment Bank Bhd and AmInvestment Bank Bhd are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.
DBS Bank Ltd is a joint global coordinator and joint bookrunner.
CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, RHB Investment Bank Bhd and UOB Kay Hian (M) Sdn Bhd are the joint bookrunners and joint underwriters. Oversea-Chinese Banking Corporation Ltd is also a joint bookrunner.