IGB Reit IPO oversubscribed

Malaysian Issuing House Sdn Bhd announce that the initial public offering (IPO) of IGB Reit under which 34 million offer units were made available for application by the Malaysian public has been oversubscribed.

The offering of IGB Reit involves the issuance of 670 million new units, it said in a statement.

A total of 32,781 applications for 773.57 million offer units were received from the Malaysian Public for a total of 34 million offer units reserved for public subscription, representing an oversubscription rate of 21.75 times.

A total of 387 applications for 44.08 million units were received from application by the eligible directors and employees of the eligible subsidaries of the sponsor under the Reserved Units, which represents a subscription rate of
94 per cent.

A total of 2,339 applicants for 98.40 million offer units were received under the eligible shareholders of sponsor category which represents a subscription rate of 82 per cent.

The Joint Bookrunners for the offering have confirmed that the institutional offering of 469 million offer units has also been oversubscribed.

Following the completion of the bookbuilding exercise under the institutional offering, the institutional price was fixed at RM1.25 per unit.

Accordingly, the final retail price for the retail offering was fixed at RM1.25 per offer unit.

All notices of allotment for the offer units under the retail offering will be mailed to successful applicants before Sept 20, 2012. — BERNAMA

IGB REIT may price IPO at RM1.25

Malaysia’s IGB Real Estate Investment Trust has priced its initial public offering to institutional investors at the top of an indicative range, sources with direct knowledge of the deal told Reuters on Thursday.

The IGB REIT priced the IPO at 1.25 ringgit per unit, at the top of the RM1.15-RM1.25 range set for the tranche focused on large investors such as pension and mutual funds, said the sources, who declined to be identified as they were not authorized to speak publicly on the matter.

The company benefited from booming demand for the deal, Malaysia’s fourth-largest IPO this year, with the offering covered “multiple times”, sources have previously said. – Reuters

IGB REIT's IPO said oversubscribed

The institutional tranche of Malaysia's IGB Real Estate Investment Trust's US$266 million listing is already oversubscribed, said two sources with direct knowledge of the matter, signaling strong demand for the deal.

The deal is set to be Malaysia's fourth largest IPO this year and the REIT may become the Southeast Asian nation's largest REIT with a possible market value of up to RM4.25 billion (US$1.4 billion), topping Pavilion Real Estate Investment Trust's RM4.05 billion.

The IGB REIT offered 469 million shares, or 70 percent, of its 670 million IPO shares to institutions at a price range of RM1.15-RM1.25 per unit.

The sources said the offer had been covered "multiple times".

"Most is covered at the top range," said one of the sources, who declined to be identified as the matter is not meant to be public.

A second source added that the subscriptions were evenly split between foreign and local investors.

The offer, which opened on Aug. 28, will close on Sept 6.

The retail portion, offered at a maximum price of RM1.25 per unit, closes on Tuesday, according to a term sheet seen earlier by Reuters.

The property trust, which owns two Kuala Lumpur shopping malls — the Mid Valley Megamall and the Gardens Mall — hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.

CIMB, Credit Suisse and Hong Leong are the joint global coordinators. CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JP Morgan and Maybank are the joint book runners.

The joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank. – Reuters