Commercial & Industrial Property News Update

Malaysia - IGB REIT Already Oversubscribed

September 4, 2012

Two sources with knowledge of the matter said that the USD 266 million listing of IGB Real Estate Investment Trust (IGB REIT) has attracted strong investor interest.

The fourth-largest IPO in Malaysia this year is already oversubscribed, signalling strong demand for the deal, said two insiders with direct knowledge of the matter.

The offer by IGB REIT, worth USD 266 million, has been covered "multiple times", with the top range being the most covered, said the sources who declined to be named as the matter is not meant to be public.

They added that subscriptions were evenly split between local and foreign investors.

The IPO consists of 469 million shares - representing 70% - of its 670 million IPO shares offered to institutional investors at prices ranging between RM 1.15 to RM 1.25 per unit.

The IPO opened on 28 August and will be closed on 6 September. The IPO for the remaining 30% open to public investors at up to RM 1.25 per unit will be closed on 4 September.

Based on the combined assets of Mid Valley Megamall and The Gardens - two of the most renowned retail properties in Kuala Lumpur - the REIT could become Malaysia's largest. IGB REIT could have a possible market value of up to RM 4.25 billion, topping the RM 4.05 billion of Pavilion REIT.

CIMB Investment Bank and Hong Leong Investment Bank have been appointed as the principal advisers and joint managing underwriters for the IPO. In addition, CIMB, Credit Suisse and Hong Leong are the joint global coordinators.

Joint book runners for the deal include CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank.

Lastly, AmInvestment, CIMB, Hong Leong and Maybank are also listed as joint underwriters.

Tags: Commercial real estate, Income properties, Investment properties


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