CapitaMalls Asia (CMA) said its Malaysian unit is launching its prospectus and retail offering on Monday.
CapitaMalls Malaysia Trust or CMMT’s final retail price will be the lower of its retail offer price of 1.08 ringgit per unit or the institutional price less a discount of 2 sen.
At an indicative price of 1.08 ringgit, CMMT said the retail offer will provide a distribution yield of 6.9 per cent.
This is based on its distribution per unit of 7.45 sen for the forecast year in 2011.
The Employees Provident Fund Board of Malaysia and Great Eastern Life Assurance Malaysia Berhad have signed up as cornerstone investors.
They will subscribe for 90 million units in all, paying a price of 1.1 ringgit per unit or the institutional price, whichever is lower.
The institutional price will be determined by way of book building.
CMA will retain a stake of 41.74 per cent in CMMT.
If an over-allotment option of up to 15 per cent of the offering of units is exercised, CMA’s stake in CMMT will be 33 per cent.
CMMT said it will invest in a portfolio of income-producing real estate primarily used for retail purposes and located primarily in Malaysia.
The share offering is open to institutional investors in Malaysia and overseas and to retail investors in Malaysia only.
CMMT is expected to be listed on the main market of Bursa Malaysia on July 16.
Source : Channel NewsAsia – 28 Jun 2010