KUALA LUMPUR, Aug 7 – 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 RM838 million. The flotation, expected to debut on Sept. 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 yesterday. The retail portion is priced at an indicative price of RM1.25 per share while the institutional price will be determined on Sept 4, after the bookbuilding ends. The bookbuilding process will start on Aug. 28, according to the prospectus. Based on the retail price of RM1.25 per share, post-IPO IGB Reit would have a market capitalisation of RM4.25 billion, 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 US$1.5 billion (RM4.65 billion). – Reuters
