KUALA LUMPUR: The institutional tranche of Malaysia’s IGB Real Estate Investment Trust’s US$266 million (RM828 million) listing is already oversubscribed, said two sources with direct knowledge of the matter, signalling strong demand for the deal.
The deal is set to be Malaysia’s fourth largest IPO this year and the REIT may become the Southeast Asian nation’s largest REIT with a possible market value of up to RM4.25 billion (US$1.4 billion), topping Pavilion Real Estate Investment Trust’s RM4.05 billion.
The IGB REIT offered 469 million shares, or 70%, of its 670 million IPO shares to institutions at a price range of RM1.15 to RM1.25 per unit.
The sources said the offer had been covered “multiple times”.
“Most is covered at the top range,” said one of the sources, who declined to be identified as the matter is not meant to be public.
A second source added that the subscriptions were evenly split between foreign and local investors.
The offer, which opened on Aug 28, will close on Sept 6.
The retail portion, offered at a maximum price of RM1.25 per unit, closes tomorrow, according to a term sheet seen earlier by Reuters.
The property trust, which owns two Kuala Lumpur shopping malls – the Mid Valley Megamall and the Gardens Mall – hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators. CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners.
The joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank.