Good prospect on IGB REIT

Confidence in IGB REIT

Tight price range for institutional tranche of IPO is good indication

KUALA LUMPUR: IGB Real Estate Investment Trust has set a tight price range for the institutional tranche of its up to US$266mil (RM823mil) initial public offering (IPO), according to a term sheet seen by Reuters, indicating confidence in demand for the offer.
The IPO, potentially the fourth largest in the South-East Asian country this year, will be offered to institutions at a price range of RM1.15 to RM1.25 per unit, the term sheet showed. IGB REIT launched its retail offer on Monday at a maximum price of RM1.25 per unit.
A wide indicative price range for an IPO would show that the sponsors are testing the strength of demand for the offering, while a narrow range shows they are reasonably certain about the take-up.
The unit of property firm IGB Corp Bhd is offering up to 670 million units in the IPO, comprising 469 million units for sale to institutional investors and another 201 million to employees and the public. Listing is set for Sept 21.
The bookbuilding range translates to a forecast 2013 yield of 5.4% to 5.8%, according to the term sheet. The book opened yesterday and closes no later than Sept 6.
Based on the top end of the IPO price, IGB REIT would have a post-IPO market capitalisation of RM4.25bil, the largest in Malaysia ahead of Pavilion Real Estate Investment Trust's RM4.05bil.
The property trust, which owns two Kuala Lumpur shopping malls the Mid Valley Megamall and the Gardens Mall expects to use the IPO proceeds for future expansion.
It has hired CIMB Investment Bank and Hong Leong Investment Bank as the principal advisers and joint managing underwriters for the IPO.
CIMB, Credit Suisse and Hong Leong are the joint global coordinators, while CIMB, Citigroup, Credit Suisse, DBS, Deutsche Bank, Goldman Sachs, Hong Leong, HSBC, JPMorgan and Maybank are the joint book runners. Joint underwriters are AmInvestment, CIMB, Hong Leong and Maybank. Reuters

The Star

Here It comes -IPO for IGP REIT

Finally the IPO for IGH reit is annoucned - http://www.bursamalaysia.com/market/listed-companies/company-announcements/1045737

So i will apply this week . Good luck to me and to those interest to apply.

launch of REITs postponed

Just saw the news from The Star  mentioned that an advisory from the investment bank had stated the launch of the prospectus had been postponed until further notice due to unforeseen circumstances. The retail offering was initially scheduled to be opened to the public on Aug 23, 2012 while the institutional offering would start on Aug 28, 2012.

Hope next week can get better picture on this IPO launching date.

Waiting for IGB REIT

IGB REIT IPO will be coming soon... i am eyeing for this IPO to earn handsome dividen and hold it for long term. Do you think it's good??


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IGB REIT to raise RM838m

By WONG WEI-SHEN

PETALING JAYA: IGB real estate investment trust (IGB REIT) expects to raise RM837.5mil from the initial public offering (IPO) of 670 million units on Bursa Malaysia's Main Market.

The IPO represents 19.7% of the REIT's total listing of 3.4 billion units. Based on a retail price of RM1.25 per unit, the total market capitalisation of IGB REIT upon listing will be approximately RM4.25bil.

IGB REIT, a unit of property developer IGB Corp Bhd, said in its prospectus exposure issued to the Securities Commission that it intended to distribute up to 100% of its distributable income for the period commencing from the date of establishment until Dec 31, 2014, and subsequently at least 90% on a half-yearly basis.

The listing of IGB’s retail REIT is to unlock the value of its retail assets - Mid Valley Megamall (seen here) and The Gardens Mall.

Its first distribution, which will encompass the period of its listing until its financial year-end on Dec 31, 2012 (FY12), will be paid within two months after FY12.

IGB REIT will invest in a diversified portfolio of primarily income-producing retail real estate in Malaysia as well as overseas.

The retail offer of 201 million units represents approximately 5.9% of the total units upon listing. 24 million of those units will be made available to the public via balloting. The remaining 167 million units are reserved for application by eligible directors and employees. The IPO will see 469 million units available for institutional offering at a price to be determined by a bookbuilding exercise. This represents 13.8% of the total units upon listing. The retail offering will be opened to the public on Aug 23, 2012 while the institutional offering will start on Aug 28, 2012.

The listing expenses are estimated to be RM27mil and will be funded via internally generated funds. IGB REIT said it would utilise the funds contributed from the rental income of its properties. “The expenses will be fully settled within one month of the listing,” it said.

Via the IPO, IGB REIT aims to enhance liquidity, raise funds for future real estate acquisitions, and provide investors stable dividends and potential capital appreciation.

Prior to its establishment, IGB REIT did not have any portfolio of real estate save for Mid Valley Megamall and The Gardens Mall.

Its total revenue comprises of gross rental income and other income earned from its properties, which include car park income amongst others. IGB REIT has forecasted revenue of RM197.8mil and RM408.1mil for the forecast period 2012 and 2013 respectively, which assumes that the first financial year is the six-month period ending Dec 31, 2012 and an establishment date of July 1, 2012.

CIMB Investment Bank and Hong Leong Investment Bank are the joint principal advisers and joint managing underwriters for the IPO.

The IPO, which will tentatively be listed on Sept 19, 2012, is the fourth largest in Southeast Asia this year.

IGB Corp group managing director Robert Tan had previously said the proceeds from the IPO would be utilised for the company's future expansion activities. If this listing is successful, Tan said IGB Corp would consider two other REITS in office/commercial and hotel/hospitality properties. The listing of IGB's retail REIT is to unlock the value of its retail assets - Mid Valley Megamall and The Gardens Mall, which are owned by IGB Corp's 75% subsidiary KrisAssets Holdings Bhd.

KrisAssets has proposed to sell both the malls and related assets to IGB Corp for RM4.6bil, which will be paid for in cash and the issuance of the 3.4 billion units in IGB REIT.

KrisAssets had also proposed the 670 million units by Mid Valley City Gardens Sdn Bhd through the IPO. It had intended to distribute the remaining 2.73 billion units as well as the cash proceeds from the sale and the IPO to its shareholders at a later date.