IGB Real Estate Investment Trust (IGBREIT), owner of two of Kuala Lumpur’s biggest shopping malls, raised 837.5 million ringgit ($269 million) in an initial public offering after pricing units at the top of a marketed range, said three people with knowledge of the matter.
The trust, an arm of Malaysian property developer IGB Corp. (IGB), sold units to institutional investors at 1.25 ringgit each, said the people, asking not to be identified as the information is private. IGB had marketed the shares at 1.15 ringgit to 1.25 ringgit apiece. Demand exceeded supply by more than 30 times at the top of the range, said one other person familiar with the matter who declined to be identified.
IGB REIT is joining a resurgence in IPOs in Kuala Lumpur where the benchmark FTSE Bursa Malaysia KLCI Index rose to a record this week. Palm-oil producer Felda Global Ventures Holdings Bhd. (FGV) raised $3.3 billion in June, and hospital operator IHH Healthcare Bhd. (IHH) sold $2 billion of stock in July.
The trust owns the Gardens Mall and Mid Valley Megamall, which it acquired from IGB Corp. subsidiary KrisAssets Holdings Bhd. (KRIS) It will generate distributable income of 108.7 million ringgit this year, which is expected to rise to 230.5 million ringgit in 2013, according to the offering prospectus.
IGB REIT’s offering comes after Pavilion Real Estate Investment Trust (PREIT), another Kuala Lumpur shopping-center owner, raised 710 million ringgit in an IPO in November 2011. Pavilion REIT is up about 50 percent from its offer price.
CIMB Group Holdings Bhd. (CIMB), Hong Leong Investment Bank Bhd. and Credit Suisse Group AG (CSGN) are joint lead managers for IGB REIT’s offering.
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