KUALA LUMPUR: IOIPG Malaysia Real Estate Investment Trust (IOIPG REIT) aims to raise approximately RM2.1bil for its sponsor, IOI Properties Group Bhd

(IOIPG), through its initial public offering (IPO) ahead of its listing on the Main Market of Bursa Malaysia on Nov 25.

IOIPG REIT, which launched its prospectus today, is expected to have a market capitalisation of approximately RM5.3bil upon listing, based on a retail price of 96 sen per unit.

The IPO involves an offer for sale of up to 2.2 billion units by IOIPG, comprising 715.61 million units under the retail offering and up to 1.48 billion units under the institutional offering.

The retail offering includes 550.61 million units reserved for entitled IOIPG shareholders on the basis of one REIT unit for every 10 existing IOIPG shares held as at Oct 30, 2026.

Another 55 million units are allocated to eligible directors, employees and business associates, while 110 million units are available to the Malaysian public, including 55 million units reserved for Bumiputera investors.

The institutional offering comprises 687.5 million units for Bumiputera investors approved by the Ministry of Investment, Trade and Industry and up to 796.89 million units for other Malaysian and foreign institutional and selected investors.

IOIPG REIT's initial portfolio comprises nine freehold properties across Selangor, Kuala Lumpur and Penang, with a total appraised value of approximately RM7.66bil as at May 31, 2026.

The portfolio is anchored by IOI City Mall, Malaysia's largest retail mall, with a net lettable area of more than 2.5 million sq ft and a committed occupancy rate of 97.9% as at May 31, 2026.

It also includes six hotels operating under Marriott International brands, namely Putrajaya Marriott Hotel, Le Méridien Putrajaya, Moxy Putrajaya, Four Points by Sheraton Puchong, W Kuala Lumpur and Courtyard by Marriott Penang, with a combined 1,920 rooms.

The remaining assets comprise IOI City Towers 1 and 2 and PFCC Towers 1, 2, 4 and 5, with a combined office net lettable area of approximately 1.83 million sq ft.

Upon listing, IOIPG REIT is expected to have total borrowings of approximately RM2.65bil, representing gearing of 34.1% against its total asset value of RM7.79bil.

For the financial year ending Dec 31, 2027, the REIT is projected to offer a distribution yield of 6.60%, based on a payout of 100% of its distributable income to unitholders.

IOIPG intends to retain up to 60% of the REIT's total issued units upon listing.

The sponsor has also granted IOIPG REIT a right of first refusal over certain properties it may dispose of, providing potential opportunities for future acquisitions.

Other properties within IOIPG's portfolio include IOI Mall Puchong, IOI Mall Damansara, IOI Mall Kulai and Palm Garden Hotel Putrajaya.

IOIPG REIT Management Sdn Bhd chief executive officer Chris Chong said the listing would unlock the value of the group's mature, income-generating assets while providing investors with access to an established property portfolio.

"The IOIPG REIT unlocks the value of our mature and proven high-quality assets, benefiting those who are looking for long-term growth and a locally-grown property group with an established track record," he said.

Chong said Malaysia's economic growth, retail spending and tourism activity provided a supportive backdrop for the portfolio.

He added that the REIT would focus on effective asset management, financial prudence and disciplined acquisitions to sustain long-term returns.

Maybank Investment Bank Bhd chief executive officer Michael Oh-Lau said the exercise represented the largest Malaysian REIT IPO to date and one of the country's largest IPOs in 2026.

He said the listing would provide investors with exposure to a diversified portfolio of income-generating retail, hospitality and office properties.

Meanwhile, AmInvestment Bank Bhd chief executive officer Christopher Ng said the REIT was well positioned to establish a presence in Malaysia's REIT market, supported by its established assets and IOIPG's backing.

Maybank Investment Bank and AmInvestment Bank are the joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO.

Applications for the retail and institutional offerings open on Nov 3 and close at 5pm on Nov 10, 2026.