Malaysia’s IGB Real Estate Investment Trust (Reit) will offer up to 670 million units in an initial public offering (IPO) that could fetch as much as 838 million ringgit ($269.80 million).
The flotation, expected to debut on September 19, is the fourth largest initial public offer (IPO) in the Southeast Asian country this year after the planned listing of Astro All Asia Network Plc.
The IPO will provide the country’s largest reit by asset value with more financial muscle to buy real estate in the future.
The IPO comprises 469 million units for sale to institutional and selected investors and another 201 million units to eligible directors, employees and the public, according to the draft prospectus of the offer filed on Monday.
The retail portion is priced at an indicative price of 1.25 ringgit per share while the institutional price will be determined on September 4, after the bookbuilding ends. The bookbuilding process will start on August 28, according to the prospectus.
Based on the retail price of 1.25 ringgit per share, post-IPO IGB Reit would have a market capitalisation of 4.25 billion ringgit, the largest in Malaysia ahead of Pavilion Real Estate Investment Trust
IGB Reit, a unit of Malaysian property firm IGB Corp Bhd, has hired CIMB Investment Bank and Hong Leong Investment Bank as the joint principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators, while CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners. Joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.
In addition to IGB Reit’s listing for the remaining part of the year, Malaysia’s second richest man Ananda Krishnan also plans to re-list his pay-TV firm Astro in a deal that could fetch as much as $1.5 billion. ($1 = 3.1060 Malaysian ringgit)