KUALA LUMPUR: AME Real Estate Investment Trust (AME REIT) made its debut on Main Market at RM1.14, a premium of one sen over its issue price of RM1.13.
At the opening bell, the counter saw 1.06 million shares changing hands.
There were no proceeds raised as the initial public offering (IPO) did not involve any issuance of new units.
I REIT Managers Sdn Bhd chairman and executive director Simon Lee Sai Boon said with its listing on the Main Market, AME REIT has ample debt headroom of up to RM240.8 million to pursue three potential acquisitions, based on the prescribed limit of 50% of total asset value.
“I REIT Managers, the management company of AME REIT, has identified three potential industrial properties for potential acquisition in the next 12 months, which could potentially increase its portfolio to 37 investment properties by the third quarter of 2023.
“The three identified properties are Plot 43 in i-Park @ Senai Airport City, and Plots 15 and 16 in i-Park @ Indahpura, which have a total gross floor area of 256,828 square feet, and are located in the industrial parks of AME REIT’s sponsor, AME Elite Consortium Bhd,” he told the media after the listing ceremony on Sept 20.
Lee said the expected lease term of each property is for a fixed tenure of 10 years, with Plots 43 and 15 targeted for commencement in the third quarter (Q3) of 2022, and Plot 16 in Q3 of 2023.
AME REIT has an initial portfolio of 34 industrial properties and dormitories which were 100 per cent tenanted as of June 15, 2022 and July 15, 2022 respectively, with multinational corporations making up more than 90% of the current total net lettable area of leased industrial properties.
With the final retail price fixed at RM1.13 per unit, AME REIT’s market capitalisation amounts to about RM588 million upon its IPO.
He said the AME REIT’s IPO exercise entailed an offering of 254.8 million units, representing 49% of the total 520 million units in AME REIT.
The retail offering of 146.3 million units comprised 128.1 million units offered to the shareholders of AME Elite on the basis of 1 unit for every 5 ordinary shares held in AME Elite on Aug 15, 2022, with 10.4 million units made available to the Malaysian public, and 7.8 million units to eligible directors and employees of AME Elite and its subsidiaries.
Meanwhile, the institutional offering consisted of 108.5 million units made available to Malaysian institutional investors and selected investors, including Bumiputera investors approved by the Ministry of International Trade and Industry, at the institutional price determined by way of bookbuilding.
The institutional offering (excluding Bumiputera investors approved by MITI) was well received with 4.20 times cover over the 109.5 million units made available through bookbuilding, whereas the ballot portion of the public tranche was oversubscribed by 2.46 times. - Bernama
