IOIPG REIT Cuts IPO Price to 91 Sen, Valuation to RM5bil

IOIPG REIT has cut its IPO price to 91 sen per unit from 96 sen, according to its announcement. The IOIPG REIT IPO now carries a listing valuation of RM5.0 billion, down from RM5.3 billion. The REIT lists on the Main Market on 25 November.

Why Did the IOIPG REIT IPO Price Fall to 91 Sen?

The price change was made after the institutional book-building exercise closed. Retail and institutional investors now pay the same 91 sen per unit.

Successful retail applicants will receive a refund of 5 sen per unit, the difference from the original 96 sen. On a 1,000-unit application, that is RM50 back.

How Did the Public Portion of the IOIPG REIT IPO Perform?

The public portion offered 110 million units and drew 175 million units in applications. That is a 0.59 times oversubscription from 10,859 applications.

• Bumiputera tranche: 1,745 applications for 18.24 million units, a 0.33 times take-up rate.
• Unsubscribed units: Reallocated through the clawback mechanism.

Which Tranches of the IOIPG REIT IPO Drew the Strongest Demand?

• Non-Bumiputera public tranche: 9,114 applications for 156.76 million units, a 1.85 times oversubscription.
• IOI Properties Group (IOIPG, 5249) shareholder placement: 604.18 million units applied for, a 1.1 times oversubscription. This is a Main Market property stock.
• Reserved units: 55 million units for eligible directors, employees and business associates, fully subscribed.

The gap between the 0.59 times public figure and the 1.85 times non-Bumiputera figure shows demand was uneven across the offer. Bumiputera applicants drove the shortfall.

What Does the RM5.0 Billion Valuation Mean for IOIPG REIT Shareholders?

The valuation has fallen by RM300 million, or about 5.7%, from RM5.3 billion. The 5 sen price cut is about 5.2% off the original 96 sen.

The source announcement does not disclose the REIT’s financials, use of proceeds or peer valuation comparisons. Read the prospectus before drawing conclusions on value.

How to Apply for Future IPOs Like IOIPG REIT

The IOIPG REIT allocation results have been announced, so the steps below apply to future IPOs. Online IPO applications require a direct CDS account in your own name. You may submit only one application per IPO, as multiple applications are an offence under the Capital Markets and Services Act 2007.

Apply through the M+ Global app using Invitation Code UBZQ. For assistance, WhatsApp +60169059789. Read more in IPO Investing with M+ Global.

Key Takeaways

• The IOIPG REIT IPO price fell to 91 sen from 96 sen, and the valuation dropped to RM5.0 billion from RM5.3 billion.
• The public portion was 0.59 times oversubscribed, with the non-Bumiputera tranche at 1.85 times and the Bumiputera tranche at 0.33 times.
• The IOI Properties Group (IOIPG, 5249) shareholder placement reached 1.1 times oversubscription.
• Successful retail applicants receive a 5 sen per unit refund, and the REIT lists on the Main Market on 25 November.

This article is for information only and is not financial advice. Always do your own research, read the prospectus and consider your own risk tolerance before investing.

Frequently Asked Questions

What is the IOIPG REIT IPO price?

The IOIPG REIT IPO price was cut to 91 sen per unit from 96 sen. Both retail and institutional investors now pay 91 sen.

Will I get a refund if I applied for the IOIPG REIT IPO?

Yes, successful retail applicants receive a refund of 5 sen per unit. The refund equals the difference between 96 sen and 91 sen.

Was the IOIPG REIT IPO oversubscribed?

The public portion was oversubscribed 0.59 times. The non-Bumiputera public tranche reached 1.85 times, and the IOI Properties Group shareholder placement hit 1.1 times.

When does IOIPG REIT list on Bursa Malaysia?

IOIPG REIT lists on the Main Market of Bursa Malaysia on 25 November. Its listing valuation is RM5.0 billion.

Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.

Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,300+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?