KUALA LUMPUR: IOI Properties Group Bhd (IOIPG) is seeking to list its real estate investment trust, IOIPG Malaysia REIT (IOIPG REIT), on Bursa Malaysia's Main Market on Nov 25, offering investors exposure to a portfolio of nine freehold properties valued at RM7.66 billion across the retail, hospitality and office sectors.
According to its prospectus dated Nov 3, the proposed listing involves an offering of up to 2.2 billion units, comprising 715.61 million units under the retail offering and up to 1.48 billion units under the institutional offering.
The retail offering is priced at RM0.96 per unit, while the institutional price will be determined through bookbuilding. The final retail price will be the lower of RM0.96 or the institutional price.
The retail portion includes 550.61 million units reserved for existing IOIPG shareholders on the basis of one unit for every 10 IOIPG shares held, 55 million units for eligible directors, employees and business associates, and 110 million units for the Malaysian public, of which half is reserved for Bumiputera investors.
The initial portfolio comprises nine properties in Selangor, Kuala Lumpur and Penang, anchored by IOI City Mall in Putrajaya. It also includes six hotels and two office developments, namely IOI City Towers and Puchong Financial Corporate Centre (PFCC) Towers.
The properties were independently valued at approximately RM7.66 billion as at May 31, 2026, while their total acquisition consideration amounts to RM7.578 billion.
The acquisition will be partly settled through the issuance of 5.5 billion consideration units valued at approximately RM4.92 billion, with the remaining RM2.65 billion funded through a sukuk programme.
For the financial period ending June 30, 2027, IOIPG REIT is projecting revenue of RM551.58 million and net property income (NPI) of RM377.65 million.
Its distributable income is forecast at RM280.45 million, translating into an annualised distribution per unit (DPU) of 6.33 sen and an indicative distribution yield of 6.6% based on the retail price of RM0.96.
The manager intends to distribute at least 90% of distributable income to unitholders on a quarterly basis.
Upon listing, the REIT is expected to have borrowings of RM2.65 billion, representing gearing of about 34.1% against total assets of RM7.79 billion.
The retail and institutional offerings open on Nov 3 and close on Nov 10, with the final price scheduled to be determined on Nov 12. Successful applicants are expected to receive their units on Nov 24, ahead of the planned listing the following day.