IGB Commercial REIT expected to have market cap of RM2.3 bln

KUALA LUMPUR, June 10 -- IGB Commercial Real Estate Investment Trust (REIT) is expected to have a market capitalisation of RM2.3 billion on listing, making it the sixth largest Malaysian REIT and the largest standalone office REIT by market capitalisation, net lettable area and appraised value.

Its manager, IGB REIT Management Sdn Bhd, said the market capitalisation was computed based on the restricted offer for sale (ROFS) price of RM1 per ROFS unit. 

“IGB Commercial REIT is also expected to have a free float of at least RM607.8 million based on the abovementioned ROFS price,” it said in a statement to announce the launch of the REIT’s prospectus today in conjunction with its listing.

The REIT is scheduled to be listed on the Main Market of Bursa Malaysia Securities Bhd on July 30.

IGB REIT Management deputy chief executive officer Wong Khim Chon said its large size and corresponding free-float could enhance the REIT’s visibility among the local and international investment community.

IGB Commercial REIT is making a restricted offering of up to 945 million units comprising a ROFS of up to 378 million units to entitled IGB Bhd shareholders on the basis of two ROFS units for every five IGB Bhd ordinary shares held as well as distribution-in-specie of up to 567 million units (DIS units) to entitled IGB Bhd shareholders on the basis of three DIS units for every two ROFS units subscribed.

The institutional offering of at least 282 million units comprises an offer for sale of 282 million units by certain IGB Bhd shareholders and offer for sale of all unsubscribed ROFS units together with the corresponding DIS units to institutional and selected investors.

The investment objective of IGB Commercial REIT is to provide unitholders with regular and stable distributions, sustainable long-term unit price, and distributable income and capital growth, while maintaining an appropriate capital structure.

IGB REIT Management said it intended to achieve the objective through investment strategies which included proactive asset management and asset enhancement strategy; potential yield accretive investments and acquisition growth strategy and; prudent capital and risk management strategy. 

-- BERNAMA