CMMT lowers final IPO retail price

CapitaMalls Malaysia Trust, CMMT, a unit of Singapore-listed CapitaMalls Asia, is raising some 852 million ringgit (267 million US dollars) in its initial public offering, IPO.

It has fixed its final price for institutional and cornerstone investors at one ringgit per share, while the final retail price is set at 98 sen per unit.

The final price is lower than its previous indicative price of 1.08 ringgit per unit for the retail offer.

CMMT says institutional and retail investors bought some 786 and a half million units in the IPO.

CEO of CapitaMalls Asia, Lim Beng Chee says the firm is heartened by the strong interest for its institutional and retail offerings.

Despite the challenging market conditions, he notes that the IPO is priced at one of the tightest yields for a Malaysian Reit IPO.

This, he says, reflects the quality of the portfolio and the management team.

The Employees Provident Fund Board of Malaysia and Great Eastern Life Assurance Malaysia Berhad had signed up as cornerstone investors.

CMMT will be listed on the main market of Bursa Malaysia on July 16.

Source : Channel NewsAsia – 8 Jul 2010

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