IOI Properties Aims to Raise About $515.7 Million via REIT IPO
By Ying Xian Wong
KUALA LUMPUR, Malaysia--Malaysian property developer IOI Properties expects to raise about $515.7 million from the initial public offering of a real estate investment trust comprising some of its key income-generating properties.
The company aims to list the IOIPG Malaysia Real Estate Investment Trust on Bursa Malaysia's main market on Nov. 25 at a market capitalization of 5.3 billion ringgit, or about $1.3 billion. The offer price for the units is set at 0.96 ringgit each, the company said Tuesday.
The listing will allow IOI Properties to unlock value from a portfolio of mature, income-generating properties by injecting them into a newly listed REIT, while retaining a controlling stake of up to 60%.
The IPO involves up to 2.2 billion units, comprising 715.6 million units for retail investors and up to 1.48 billion for institutional investors.
The REIT's initial portfolio spans nine freehold assets valued at 7.66 billion ringgit as of May 31--including IOI City Mall--six hotels under Marriott International brands and office buildings.
The trust targets a distribution yield of 6.6% for the financial year ending December 2027 and plans to distribute all distributable income. Gearing is expected to be 34.1% upon listing, with total borrowings of about 2.65 billion ringgit.
Maybank Investment Bank and AmInvestment Bank are serving as joint principal advisers on the IPO.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
November 03, 2026 03:14 ET (08:14 GMT)
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