IGB REIT (Real Estate Investment Trust) is scheduled to be listed in Main Market of Bursa Malaysia on the 21st September 2012. The Initial Public Offering (IPO) consists of 670 million units at an indicative IPO price of RM1.25 per unit.
Out of these, 469 million units are offered to Malaysian and foreign institutional and selected investors and a retail offering of 201 million units to the public, eligible directors and employees of the group.
The institutional price will be determined by way of book building while for the retail application, it is payable at RM1.25 upon application. If the final retail price is lower, the difference will be refunded.
The IPO expected to raise RM837.5 million and will be used for future expansion both locally and abroad.
Currently, IGB REIT is made up of two assets namely The Mid Valley Megamall and The Gardens Mall. Some 3.4 billion units will be issued under the exercise for the two malls which have been a valued at RM4.6 billion.
Prior to listing, both assets come under KrisAssets Holdings Bhd, in which IGB has a 75 per cent stake. KrisAssets will sell the shopping complexes to the IGB REIT.
After listing IGB will have 51 per cent stake in IGB REIT. The dilution of the stake would provide IGB with an estimated RM800 million in cash, following the listing exercise.
The table below is the financial summary of IGB REIT.
|FYE 2009||FYE 2010||FYE 2011||FPE 2011||FPE 2012|
|Net Property Income (NPI) (RM’000)||202,163||217,981||250,408||63,164||66,741|
For financial year end 2012 & 2013, the management intended to pay 100 percent of the distributable income to the unit holders. This translates to a dividend yield of 5.10 & 5.37 percent per annum respectively. Distributable income is the Net Property income (NPI) minus the utilities, maintenance expenses and other operating expenses such as trust expenses (management fee and trustee fee).
For those who are interested in IGB REIT IPO, you may subscribe at ATM machines or via Internet Banking.
The retail subscription period is opened until 4th September 2012 at 5pm. Tentative balloting date is on 7th September while the allotment date is on 20th September 2012. IGB REIT stock name in Bursa Malaysia is “IGBREIT”.
View IGB REIT prospectus in Bursa Malaysia webpage.
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