Landmark Image REIT IPO oversubscribed 2.1x, raises PKR 921M
Mutual funds, banks, brokers, and pension funds among 178 successful investors
Haris Zamir
Business Editor
Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)
The Image REIT, managed by Sinolink REIT Management Company Limited, has successfully concluded its book-building process at the Pakistan Stock Exchange (PSX), raising PKR 921.07 million through the sale of 92.02 million units. The IPO witnessed overwhelming interest from institutional investors, with the issue oversubscribed by 2.1 times.
The total bids received amounted to PKR 1.923 billion against the target of PKR 923 million, reflecting immense participation from mutual funds, commercial banks, securities brokers, and other financial institutions.
According to details provided by company officials, commercial banks purchased 6.9 million units, mutual funds acquired 4 million units, securities brokers bought 3.5 million units, and employees’ provident/pension funds secured 7.6 million units of Image REIT.
This marks Pakistan’s first REIT IPO conducted through a book-building process, making it a landmark achievement in the country’s capital markets.
The two-day book-building took place on September 10 and 11 with the strike price being set at PKR 10.01 per unit, slightly above the floor price of PKR 10. Investor bids ranged between PKR 10 and PKR 11.01, while the price ceiling had been capped at PKR 14 per unit.
According to Topline Securities, the lead consultant and book runner for the IPO, a total of 209 investors participated in the book-building, out of which 178 investors were successful in securing allocations.
The public subscription phase of the IPO is scheduled for September 17 and 18, during which general investors will be able to purchase units of Image REIT.
The REIT’s income stream is backed by two major real estate assets in Karachi—an eight-story, fully leased commercial building located on Shahrah-e-Faisal and a mixed-use residential and commercial development on Tipu Sultan Road.
“The funds raised through the IPO will be utilized for the completion and marketing of the 11 residential floors of the developmental REIT project,” the company stated. The Central Depository Company of Pakistan Limited (CDC) has been appointed as the trustee of Image REIT.
Topline Securities and Growth Securities are acting as joint consultants and book runners for the Image REIT IPO.
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