The demand for the IGB REIT IPO was very good. The institutional portion of the initial public offering has been oversubscribed by more than 30 times and oversubscribed by 21.75 times by the Malaysian public. IGB REIT IPO is the forth largest this year behind FGV and IHH.
The dividend yield for the IGB REIT was likely to be 5.1% to 5.2% a year.
Various research houses give early target or fair prices for IGB REIT ahead of the listing day, tomorrow 21st September 2012. All of them generally targeted higher than IPO subscription prices of RM1.25 per share in the range of RM1.37 to RM1.45.
The table below is the compilation of target price / fair value from various research houses.
| No | Investment or Research Companies | Target / Fair Price (RM) |
|---|---|---|
| 1 | Affin Bank | 1.43 |
| 2 | Alliance Bank | 1.37 |
| 3 | ECM Libra | 1.37 |
| 4 | MIDF Research | 1.43 |
| 5 | OSK Research | 1.37 |
| 6 | RHB Bank | 1.43 |
| 7 | TA Securities | 1.45 |
If you have target price / fair value from another brokers, kindly leave your comment.
Why the yield for IGB is lower compare to the rest?
It basically follow supply and demand concept. Good & big REIT like this, the demand is higher & lead to investor willing to accept lower yield.