BUSINESS

AME ELITE AIMS TO RAISE RM254.8 MLN FROM REIT IPO BY Q2 2022

25/11/2021 08:10 PM

KUALA LUMPUR, Nov 25 -- AME Elite Consortium Bhd aims to raise RM254.8 million from its proposed establishment and listing of a real estate investment trust (AME REIT) on Bursa Malaysia’s Main Market by the second quarter of 2022 (Q2 2022).

In a statement today, the integrated industrial space solutions provider said of the RM254.8 million proceeds, which is based on an illustrative offer price of RM1.00 per unit, RM160.5 million would be used for future industrial property development and investment projects, including land acquisitions and joint ventures.

“RM90.0 million will be used to repay borrowings, and RM4.3 million for expenses related to establishing the REIT,” it said.

As consideration for the transfer, AME Elite is proposing to issue 520.0 million undivided interest in AME REIT (units), and a cash consideration of RM37.0 million, which will be funded from Islamic financing.

Of the total issuance of 520.0 million units, 254.8 million units will be offered via initial public offering (IPO), it said.

 “The offer issuance will consist of up to 130.0 million units to AME Elite shareholders, 10.4 million units to the Malaysian public, and 7.8 million units to eligible employees and directors of AME and subsidiaries.

“Meanwhile, at least 106.6 million units will be offered to Bumiputera investors approved by Ministry of International Trade and Industry (MITI), as well as institutional investors and selected investors,” it said.

Upon the completion of the proposed offering, which is expected in Q2 2022, AME Elite said it would be the controlling unit-holder of AME REIT, holding at least 51.0 per cent of the total issued units.

It said the final IPO offer price would be determined after considering factors such as the financial history of identified real estates, pro forma net asset value per unit upon listing, future prospects, and a forecast distribution yield of AME REIT, as well as book-building with institutional investors.

According to AME Elite, the proposed REIT IPO would involve RM557.0 million worth of industrial and industrial-related real estate, currently held by its subsidiaries.

It said the initial investment portfolio would comprise 34 industrial buildings and workers’ dormitories located in, or near the company’s managed industrial parks, namely i-Park@Senai Airport City, i-Park@Indahpura, and i-Park@SiLC. 

“The identified real estate has ongoing tenancy agreements with our domestic and foreign clients, with tenancy period of between two and 12 years,” it said.

Hong Leong Investment Bank Bhd is the principal adviser, bookrunner and managing underwriter for the proposed REIT establishment and listing.

-- BERNAMA


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