CMMT – BT

SINGAPORE – CapitalMalls Malaysia Trust (CMMT) is offering shares at RM1.08 (US$0.332) for its Malaysian initial public offering. Distribution yield is expected at 6.9 per cent (7.45 sen) for 2011.

At RM1.08, CMMT could raise up to RM849.44 million from the IPO.

CMMT is the Malaysian unit of shopping malls operator, CapitaMalls Asia (CMA). It has three shopping malls valued at RM2.13 billion – Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur, and The Mines in Selangor.

A total 786.522 million units are offered, 67.5 million for retail investors and 719 for institutional investors. CMA will retain a stake of 41.74 per cent in CMMT.

However, if there is an over-allotment option issue of 118 million units, which if exercised, would reduce the stake in CMA to 33 per cent.

The Employees Provident Fund Board of Malaysia and Great Eastern Life Assurance (Malaysia) Berhad have signed up as cornerstone investors for the IPO to subscribe for 90,000,000 units inaggregate, which is 11.4 per cent of the total units offered.

The cornerstone investors have agreed to pay RM1.10 per unit or the institutional price, whichever is lower.

The final retail price will be the lower of the retail offer price of RM1.08 per unit or the institutional price less a discount of 2 sen. The institutional price will be determined by way ofbookbuilding.

The offering closes July 5 and the shares are expected to be listed the main board on Bursa Malaysia on July 16.