The planned listing of Sunway City Bhd’s Real Estate Investment Trust (REIT) will raise around 1.5 billion ringgit (S$646 million), according to sources.
With a fund size of 2.78 billion units, the REIT is set to become the largest in Malaysia upon its listing for Q3 or Q4 this year.
The listing comes as the global market for IPOs, which had shown signs of resurgence early in 2010, faces a spate of downsizing and delays.
With the recent news of shipping firm MISC hiring bankers for the IPO of its heavy engineering unit, the IPO market in Malaysia seems to be unaffected, while national oil firm Petronas is still on track with an IPO for its petrochemicals business, and nursing school operator Masterskill saw its IPO priced at the higher end of an indicative range.
The Sunway REIT will have about 1.65-billion units for public subscription, of which 1.5 billion are for institutional and selected investors. There are 100 million additional units reserved for future issuance.
Sources said that the IPO, which was expected to take place in H1 2010, could raise about RM1 billion. Bankers for the offering are HSBC, RHB Investment Bank, JP Morgan Credit Suisse and CIMBL.
According to Sunway, it can receive RM2.7 billion in cash and around one billion units in the REIT for the eight properties it plans to inject into the unit.
The combined market value of the properties is about RM 3.7 billion.
The Malaysian property developer will manage the REIT, in which it will have a 38.25-percent share upon its listing.