Malaysia's IOI Properties launches $515.7 million share sale of property trust

KUALA LUMPUR/HONG KONG, Nov 3 : IOI Properties Group launched an IPO for its property trust on Tuesday, seeking to raise about 2.1 billion ringgit ($515.7 million), ahead of its planned November 25 listing on Bursa Malaysia. 

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.

Here are more details:

• 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, its prospectus showed

• The trust commands a portfolio of nine properties valued at 7.66 billion ringgit, including IOI City Mall, Malaysia's largest retail mall, and six Marriott-branded hotels

• IOI Properties is offering up to 2.2 billion units in IOIPG REIT. The sale includes up to 715.6 million units for retail investors and up to 1.48 billion units for institutional investors, according to the prospectus

• The company will receive the proceeds of the share sale but did not disclose what it plans to do with the money

• IOI City Mall had more than 2.5 million square feet of leasable space and a committed occupancy rate of 97.9 per cent as of May 31, the prospectus showed

• It forecasts a distribution yield of 6.6 per cent for the year ending December 31, 2027. IOI Properties plans to retain up to 60 per cent of the trust's units after the listing