KUALA LUMPUR (September 1) – The initial public offering (IPO) of the Malaysian public stake in AME Real Estate Investment Trust (AME REIT) was 2.46 times oversubscribed.
AME REIT is scheduled to list on September 20th on the main market of Bursa Malaysia.
The IPO includes an offering of 254.8 million units, representing 49% of the AME REIT’s 520 million total units.
For the institutional offering, AME REIT received demand for a total of 459.2 million units at the high end of the bookbuilding range of RM1.15 per unit from Malaysian institutional investors and select investors (excluding Bumiputera investors, who are supported by the Ministry of International Trade and Industry (MITI), I REIT Managers Sdn Bhd said in a statement on Thursday (September 1) I REIT Managers is the management company of AME REIT.
Upon completion of the book building process, the institutional price was set at RM1.13 per unit.
“The retail offering includes 10.4 million units to be made available to the Malaysian public, 7.8 million units for the eligible directors and employees of AME Elite Consortium Bhd and its affiliates (pink type offering) and a restricted sale offering (ROFS ) of 128.1 million units to the shareholders of AME Elite (Eligible AME Shareholders) on a basis of one unit for every five common shares held in AME Elite on August 15, 2022,” AME REIT stated.
AME REIT received a total of 1,567 applications for 36 million units for its 10.4 million unit offering to be advertised by the Malaysian public.
The 7.8 million units made available under the Pink Form offering were fully subscribed.
Meanwhile, 121.7 million units of the ROFS stake, representing 95% of the total ROFS units, have been subscribed by the eligible AME shareholders and the remaining 6.4 million units have been fully subscribed by the Malaysian institutionals under the clawback and redistribution provisions Covered investors and select investors set out in AME REIT’s prospectus dated 17 August 2022.
The final retail price is set at RM1.13 per unit, which is two sens lower than the retail price of RM1.15 per unit. The difference of two sen per unit will be refunded to all successful subscribers to the retail offer.
Simon Lee Sai Boon, Chairman and Executive Director of I REIT Managers, said the positive response from institutional investors and the Malaysian public is a vote of confidence in AME’s unique positioning as a sponsored REIT with positive potential for strong inorganic growth.
“With industrial space solutions provider AME Elite as our sponsor, AME REIT will be able to leverage its future real estate development projects as a ready source for high quality industrial leased properties, worker housing and warehouses for acquisition.
“In addition, our prospects would be further improved by the order to acquire third-party real estate beyond the sponsor’s obligations.
Management is pleased to set the price at RM1.13, striking a balance between optimizing revenue for the sponsor AME Elite and generating a higher return for the AME REIT subscribers,” said Simon.
AME REIT will not generate any proceeds as the IPO does not involve the issue of new shares.
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