I REIT Managers, the management company of AME Real Estate Investment Trust (AME REIT) announced today that its
institutional offering was well-received with approximately 4.20 times cover over the 109.5 million units made available for the bookbuilding process.
The Initial Public Offering (IPO) exercise entails an offering of 254.8 million units, representing 49.0% of total 520.0 million units in AME REIT.
For its institutional offering, AME REIT received demand for a total of 459.2 million units at the top end of the bookbuilding range of RM1.15 per unit from the Malaysian institutional investors and selected investors [excluding Bumiputera investors approved by the Ministry of International Trade and Industry (MITI)].
Upon the conclusion of the bookbuilding process, the institutional price has been fixed at RM1.13 per unit.
Meanwhile, the ballot portion of public tranche of its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia was oversubscribed by 2.46 times.
The retail offering comprises 10.4 million units made available to the Malaysian public, 7.8 million units to the eligible directors and employees of AME Elite and its subsidiaries (Pink Form Offering), and restricted offer for sale (ROFS) of 128.1 million units to the shareholders of AME Elite (Entitled AME Shareholders) on the basis of 1 unit for every 5 ordinary shares held in AME Elite on 15 August 2022.
AME REIT received a total of 1,567 applications for 36.0 million units for its offering of 10.4 million units for application 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 portion representing 95% of the total ROFS units were subscribed by the Entitled AME Shareholders and the remaining 6.4 million units have been fully covered by the Malaysian institutional investors and selected investors pursuant to the clawback and reallocation provisions set out in the Prospectus of AME REIT dated 17 August 2022.
The final retail price is fixed at RM1.13 per unit, which is at RM0.02 lower than the retail price of RM1.15 per unit. The difference of RM0.02 per unit shall be refunded to all successful subscribers for the Retail Offering.
AME REIT is slated for listing on the Main Market of Bursa Malaysia on 20 September 2022 with a market capitalization of approximately RM588.0 million based on the final retail price.
“The positive response from the institutional investors and Malaysian public are a vote of confidence for our unique positioning as a sponsor-led REIT with positive potential of strong inorganic growth. With industrial space solutions provider AME Elite as our sponsor, AME REIT will be able to leverage on their future property development projects as a ready source for high-quality tenanted industrial properties, workers’dormitories and warehouses for acquisition,” Simon Lee Sai Boon, Chairman and Executive Director, I REIT Managers Sdn Bhd said.
There will be no proceeds raised by AME REIT as the IPO does not involve any issuance of new units.
Hong Leong Investment Bank is appointed as the Principal Adviser and Sole Underwriter for AME REIT’s IPO exercise, and Joint Bookrunner for the Institutional Offering together with RHB Investment Bank.
