IGB REIT IPO – Application Failed, Now What?

If you didn’t get IGB REIT IPO, should you buy the stock when it goes listing then? Probably at a price which is higher than RM 1.25/share?

Check your chances below and if your IPO money already got refunded, soon. Ā šŸ˜€

Anyway, if you want to buy when it goes listing, what reasons would you base your decision on?

IGB REIT IPO result

Here’s what I think from OSK Research report – 2 things, one – potential in increasing & consistent rental income. Second – valuation. Think it as you were a big shot property investor šŸ™‚

Additional info on the REIT manager below from OSK Research:

Retail-focused REIT managers with track record. IGB REIT Management SB, the REIT manager, willĀ adopt an investment policy of having a diversified portfolio of income-generating real estate primarily usedĀ for retail purposes in Malaysia, overseas as well as other related assets. The REIT manager comprises aĀ team with an established track record, spearheaded by Tan Sri Robert Tan Chung Meng, the GroupĀ Managing Director, who has over 20 years of experience in the property industry and holds directorshipsĀ in Wah Seong Corporation and Tan & Tan Developments. He has been involved in various developmentĀ projects since joining the IGB Group 1995. In particular, he has been instrumental in the success of MidValley City and its two prized shopping malls, as he was involved in all stages of their developmentĀ projects since inception. Tan Sri Tan is also supported by his key management team with experienceĀ ranging from eight to 20 years in the relevant fields.

Also see IGB REIT 2012 Infographics

This Post Has 17 Comments

  1. ash

    Kindly adviseadvise me…i am owing 1500 units igb reits..what i need to do?waiting Or sell out?

    1. LCF

      Then, I’d like to ask, what is your goal and return, ash?

  2. Ridzuanjalil

    Praise to Allah..i apply for 50000unit and get it all..

    1. LCF

      Congrats Ridzuan! Listing tomorrow šŸ™‚

  3. wan

    i also didnt get it…for the public they gave it to the millionaires….shd give to the poor as well…

    1. LCF

      Hi Wan, I wouldn’t generalize like that šŸ™‚ since it’s via balloting system. So I guess, fair chance for the public šŸ™‚
      There are people in lowyat forum who do get it, and I’m pretty sure they are not millionaires šŸ™‚
      Cheers!

    1. LCF

      Yea, only 1% of the public got šŸ˜€

  4. knowthymoney

    Ooo..i check my status..still pending.. Maybe got chance?? lol

    1. LCF

      Keep yer fingers crossed Kris! Let us know tomorrow šŸ˜€

  5. jacky

    no luck, dun get this ipo… šŸ™

    1. LCF

      Hi Jacky, we are in the same boat šŸ™ Just got it refunded in my Maybank2U

  6. boy

    Hi CF, thanks for making this. I got one question, how about buying Kris Assets at RM9.17 now? Is that way to overprice?

    1. LCF

      OSK Research has this to say actually: KrisAssets vs IGB REIT

      Some investors may wonder if buying KrisAssets shares (KRIS MK, Non-Rated) may provide a cheaper alternative to gain access to IGB REIT’s IPO. Recall that KrisAssets will undertake a distribution exercise of 2,730m IGB REIT units to IGB Corp and other shareholders after the listing. IGB Corp will see its shareholdings rise to 51% and the remainding 49% will be allocated for public and institutional shareholders. Thereafter KrisAssets will be voluntarily wound-up and de-listed by Bursa Securities. Based on the calculations extracted from KrisAssets’ circular to shareholders, for every one share of KrisAssets owned by a shareholder, he/she would be entitled to 5.24x IGB REIT units and an estimated additional RM2.43 cash payment. Assuming KrisAssetsā€™ closing price of RM9.15 as at 30 Aug 2012 and that the proposed cash payment is unchanged, the IGB REIT ‘pricing’ arrived at is RM1.28. Hence, it is cheaper to subscribe to the IGB REIT unit for a retail price of RM1.25. However, we think the run-up of KrisAssetsā€™ share price could be attributed to a premium, as this is a more guaranteed method to obtain IGB REIT’s shares as compared to an IPO subscription, albeit the time delay for the entitlement to materialize.

      1. NG

        hi LCF…is it comfirm can get it 5.24unit igb reit + cash payment if i hold 1 shares of kassets? how to calculate 5.24 ? is it based on share capital of kassets?

          1. LCF

            Page 19 of this pdf file, to be exact

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