PETALING JAYA: IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) has signed an underwriting agreement with a syndicate of six financial institutions in a step towards its initial public offering (IPO) and listing on the Main Market of Bursa Malaysia.
The agreement was entered into by IOIPG REIT Management Sdn Bhd, the manager of IOIPG REIT, together with its sponsor, IOI Properties Group Bhd, and trustee, MTrustee Bhd, with joint underwriters Maybank Investment Bank Bhd, AmInvestment Bank Bhd, CIMB Investment Bank Bhd, Hong Leong Investment Bank Bhd, RHB Investment Bank Bhd, and UOB Kay Hian (M) Sdn Bhd.
The joint underwriters will underwrite an aggregate of 165 million offer units under the public offering and restricted pink form offering, subject to the clawback and reallocation provisions.
The IPO involves up to 2.2 billion offer units, equivalent to 40% of the 5.5 billion units to be issued upon listing, comprising 715.61 million units under the retail offering and up to 1.48 billion units under the institutional offering.
Both tranches are subject to clawback and reallocation provisions, while the institutional offering is also subject to an over-allotment option.
The retail offering comprises 550.61 million units reserved for eligible shareholders of IOIPG, on the basis of one unit for every 10 existing ordinary shares held as at an entitlement date to be determined.
A further 55 million units are allocated to eligible directors and employees of the fund manager and IOIPG, as well as IOIPG’s eligible business associates.
The remaining 110 million units will be offered to the Malaysian public, with half of the allocation, or 55 million units, reserved for Bumiputera investors.
IOIPG REIT CEO Chris Chong said the signing the underwriting agreement is an important step in bringing IOIPG REIT’s listing to fruition.
He said Malaysia’s tourism sector continues to gain momentum, with with tourism industry amounting to RM323 billion in 2025, contributing to 15.9% of Malaysia’s gross domestic product, and international arrivals targeted to reach 47 million in 2026 under the Visit Malaysia 2026 campaign, which has since been extended into 2027.
“This sustained tourism growth bodes well for both our hotel and retail assets, with Malaysia’s retail trade sector also remaining resilient, supported by strong domestic demand and rising tourist spending.”
IOIPG REIT is a real estate investment trust established with the principal investment policy of investing, both directly and indirectly, in a diversified portfolio of income producing real estate assets located in Malaysia used for retail, commercial, office, industrial and hospitality purposes and such other non-real estate assets in Malaysia.
IOIPG REIT’s initial asset portfolio, comprising nine assets in strategic locations across Selangor, KL City Centre and Penang valued at about RM7.66 billion as of May 31, 2026, is anchored by IOI City Mall, Malaysia’s largest retail mall, which boasts a net lettable area (NLA) of more than 2.5 million sq ft.
Rounding out the portfolio are six hotels operating under Marriott International’s family of brands, namely Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur, and Courtyard by Marriott Penang, with an aggregate of 1,920 guest rooms, as well as two office properties, IOI City Towers and PFCC Towers, with a combined NLA of some 1,832,938 sq ft.
Maybank IB and AmInvestment Bank are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.
Chong said despite an oversupply in the broader Klang Valley office market, demand outside the KL city centre continues to be resilient, driven by a flight to quality trend as businesses relocate to premium Grade A offices that offer amenities, conveniences, connectivity and sustainability-driven features.
He said both IOI City Towers and PFCC Towers sit in key growth corridors, Putrajaya and Puchong, which have seen rising occupancy rates since 2022.
“We believe these structural growth momentum across our retail and office assets, provides the confidence and resilience in the future prospects of IOIPG REIT, and its ability to deliver stable and recurring income to our future unitholders,“ he said.
IOIPG REIT is expected to launch its prospectus this quarter.
