KARACHI: Image REIT, a Shariah-compliant hybrid and perpetual Real Estate Investment Trust (REIT) scheme, got oversubscribed by 17% on first day of the book building process, receiving investors’ interest to acquire 107.85 million shares against an offer to sell 92.02 million shares at Pakistan Stock Exchange (PSX) on Wednesday.
The “strike price” of REIT units, however, remained stuck at the opening level (floor price) of Rs10/unit throughout the day despite of the notable investors’ interest, as it has the liberty to move upward by 40% to Rs14 per unit during the initial public offering (IPO). The two-day Dutch bidding (book building/IPO) would culminate on Thursday evening.
The REIT is managed by Sinolink REIT Management Company Limited. It has aimed raising a minimum of Rs920 million through selling 92.02 million shares to institutional, high-net worth and individual investors at the IPO.
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It would be able to raise a maximum of Rs1.29 billion in case the unit price hit upper limit of Rs14/unit on second day of the book building process.
Topline Securities, a consultant and book runner for the IPO, reported “49% of the book filled at market open”.
Later on, it updated, “book filled 100% in record one and half hour”.
Growth Securities is the joint consultant and book runner for the IPO.
Image REIT generates income through two prime projects in Karachi - an 8-floor fully occupied commercial building on Shahrah-e-Faisal, and a residential-cum-commercial project located on Tipu Sultan Road - which is expected to generate both sales and rental income, according to recent a statement.
“Proceeds from the IPO will be utilised for the completion and marketing of 11 residential floors of the Developmental REIT project. The Central Depository Company of Pakistan Limited (CDC) has been appointed as the Trustee of Image REIT,” the statement read.
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