IOIPG Malaysia Reit prices retail IPO at 96 sen

IOIPG Malaysia Reit's retail IPO price has been fixed at 96 sen per share, with the trust expected to be valued at RM5.3 billion when it lists. Its debut on the Main Market of Bursa Malaysia is scheduled for November 25.

IOI Properties Group Bhd is offering up to 2.2 billion shares through the sale. The retail tranche contains 715.61 million units, while institutions are being offered up to 1.48 billion units. Both tranches allow for clawback and reallocation. The application deadline is November 10 at 5pm.

Of the retail units, 550.61 million are reserved for IOI Properties shareholders, whose entitlement is one Reit unit for every 10 shares owned as at October 30. Eligible directors, employees and business associates have an allocation of 55 million units. Malaysian public investors can apply for 110 million units, including a Bumiputera allocation of 55 million.

Alvin Loo, the trust's head of finance, said IOI Properties intends to direct the proceeds towards repaying borrowings, reimbursing past capital spending and financing potential investments. The group plans to maintain a holding of up to 60 per cent after the flotation.

Nine freehold assets will form the initial portfolio, spanning Selangor, Kuala Lumpur and Penang. Their combined appraised value was RM7.66 billion on May 31. They comprise IOI City Mall, six Marriott International-branded hotels and two office properties.

The trust forecasts a 6.60 per cent distribution yield for its financial year ending December 31, 2027, and intends to pay out 100 per cent of distributable income. At listing, expected borrowings of RM2.65 billion would put gearing at 34.1 per cent, based on assets valued at RM7.79 billion.