PETALING JAYA: IOI Properties Group Bhd
(IOIPG) has gained approval from the Securities Commission Malaysia (SC) to establish and list its real estate investment trust (REIT) on Bursa Malaysia.
In a filing with Bursa Malaysia, IOIPG noted the REIT will debut with an initial fund size of 5.5 billion units, backed by a portfolio of landmark assets valued at RM7.58bil.
These include IOI City Mall Phases 1 and 2, IOI City Towers, PFCC Towers, and a suite of premium hotels such as Putrajaya Marriott, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur, and Courtyard by Marriott Penang.
The acquisitions will be funded through the issuance of 5.5 billion consideration units at 90 sen each and RM2.65bil in cash via Sukuk financing.
The proposed IPO structure comprises a retail offering of 715.6 million units, including a restricted offer for sale to IOIPG shareholders, allocations to eligible persons, and a public tranche with 55 million units reserved for Bumiputera investors.
Additionally, an institutional offering of up to 1.48 billion units will be made to both Bumiputera-approved and other institutional investors.
The SC’s approval comes with conditions, including ensuring 12.5% Bumiputera equity participation and operational audits post-listing.
This REIT marks a significant milestone for IOIPG, unlocking value from its trophy assets while offering investors exposure to Malaysia’s premier retail, office, and hospitality properties.
