KUALA LUMPUR: The initial public offering (IPO) of IOI Properties Group Bhd’s real estate investment trust (Reit), IOIPG Malaysia Reit, had been oversubscribed by 0.59 times for its public portion.
While the non-Bumiputera portion was oversubscribed by 1.85 times, the Bumiputera portion of the public issuance was undersubscribed. According to IOIPG Malaysia Reit, the Bumiputera’s public portion was subscribed at 0.33 times.
The institutional offering was fully subscribed, drawing interest mainly from long-term investors, including government-linked investment companies (GLICs) and insurers.
The IPO price was fixed at 91 sen per unit following the bookbuilding process, down from the initial retail price of 96 sen.
At the final price, the offering is expected to raise about RM2 billion, while giving the Reit an expected market capitalisation of RM5 billion upon listing.
A total of 10,859 applications were received for 175 million units under the public offering, representing an overall subscription rate of 1.59 times.
The non-Bumiputera portion was oversubscribed 1.85 times, with 9,114 applications for 156.76 million units, while the Bumiputera portion received 1,745 applications for 18.24 million units, representing a subscription rate of 0.33 times.
Meanwhile, the restricted offering to entitled shareholders was oversubscribed 1.10 times, with applications for 604.18 million units against 550.61 million units available.
The 55 million units offered to eligible directors, employees and business associates were fully subscribed.
The institutional offering, comprising up to 1.48 billion units, was also fully subscribed, with interest predominantly from long-only investors, including GLICs and insurance companies.
At the IPO price of 91 sen, IOIPG Reit is projected to offer a distribution yield of 6.96 per cent, based on an annualised projected distribution of 6.33 sen per unit for the financial period from Sept 11, 2026, to June 30, 2027.
The final retail price was reduced from the initial 96 sen, with successful retail applicants to receive a refund of five sen for each unit allotted, without interest, within 10 market days from the date of the final ballot applications.
Notices of allotment are expected to be mailed to successful applicants by Nov 24, 2026.