IOI Properties Group, controlled by Malaysian billionaire Lee Yeow Seng, has launched an initial public offering for its property trust, seeking to raise about RM2.1 billion (US$515.7 million).
Maybank Investment Bank, a joint principal adviser on the offering, said the IPO, launched on Tuesday ahead of its planned Nov. 25 listing on Bursa Malaysia, would be Malaysia’s largest-ever for a real estate investment trust.
The offering values IOIPG Malaysia Real Estate Investment Trust (REIT) at about RM5.3 billion, based on a retail price of RM0.96 per unit, its prospectus showed.
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.
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Lee Yeow Seng, group CEO of IOI Properties. Photo from the company’s website |
The trust commands a portfolio of nine properties valued at RM7.66 billion, including IOI City Mall, Malaysia’s largest retail mall, and six Marriott-branded hotels.
IOI City Mall had more than 2.5 million square feet of leasable space and a committed occupancy rate of 97.9% as of May 31, the prospectus showed.
It forecasts a distribution yield of 6.6% for the year ending Dec. 31, 2027. IOI Properties plans to retain up to 60% of the trust’s units after the listing.