AME Reit debuted on the KLSE Main Market with an opening price of RM1.14 a 1 sen premium, I REIT Managers Sdn Bhd, the management company of AME Real Estate Investment Trust had announced earlier that its institutional offering was well-received with approximately 4.20 times cover over the 109.5 million units made available for the book building process.
The Initial Public Offering (“IPO”) exercise entails an offering of 254.8 million units, representing 49.0% of the total 520.0 million units in AME REIT. For its institutional offering, AME REIT received a demand for a total of 459.2 million units at the top end of the book building range of RM1.15 per unit from Malaysian institutional investors and selected investors. Upon the conclusion of the book-building process, the institutional price had been fixed at RM1.13 per unit.
AME 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 is 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 their future property development projects as a ready source for high-quality tenanted industrial properties, workers’ dormitories, and warehouses for acquisition.
Moreover, our prospects would be further enhanced by the mandate to acquire third-party properties beyond the sponsor’s undertakings. The management is pleased to fix the price at RM1.13, balancing between optimising proceeds for the sponsor AME Elite and giving a higher yield to AME REIT subscribers said Simon Lee Sai Boon, Chairman, and Executive Director.