IGB slips to low of RM2.41, launch of REITs postponed (1597)

PETALING JAYA: Shares of IGB Corp Bhd slipped to a low of RM2.41 on Friday while investors a fresh date for the launch of the prospectus for its real estate investment trusts (REITS) which would see it raising RM837.5mil from the initial public offering (IPO).

The fall in the share price was also in line with the weaker regional and domestic markets.

At 3.37pm, IGB was down 10 sen to RM2.45. There were 6.26 million shares done at prices ranging from RM2.41 and RM2.56.

The FBM KLCI was down 2.84 points to 1,648.77. Turnover was 864.17 million shares valued at RM715.57mil. Losers beat gainers nearly two to one, with 459 declining stocks to 256 advancers.

An advisory from the investment bank had stated the launch of the prospectus had been postponed until further notice due to unforeseen circumstances.

IGB REIT was expected to raise RM837.5mil from the IPO of 670 million units on Bursa Malaysia's Main Market.

The IPO represents 19.7% of the REIT's total listing of 3.4 billion units. Based on a retail price of RM1.25 per unit, the total market capitalisation of IGB REIT upon listing will be approximately RM4.25bil.

IGB REIT, a unit of property developer IGB Corp Bhd, had stated in its prospectus exposure issued to the Securities Commission that it intended to distribute up to 100% of its distributable income for the period commencing from the date of establishment until Dec 31, 2014, and subsequently at least 90% on a half-yearly basis.

The retail offering was initially scheduled to be opened to the public on Aug 23, 2012 while the institutional offering would start on Aug 28, 2012.