Real estate listing: Book building ends, Dolmen City REIT oversubscribed
Strike price determined by Dutch Auction Method now stands at Rs11 per unit.
REITs are collective investment schemes that pool investors’ funds for onward investment in real estate. PHOTO: ATHAR KHAN/EXPRESS
KARACHI:
The book-building portion of the initial public offering (IPO) of Dolmen City REIT was subscribed 1.7 times on June 8 and 9, resulting in the strike price of Rs11 per unit.
Dolmen City REIT offers investors the opportunity to become unit holders of two components of the Dolmen City project – Dolmen Mall Clifton and the Harbor Front building – located on the Karachi seafront.
According to a stock notice, the lead adviser to the listing received a demand for Rs7.16 billion against the issue size of Rs4.16 billion at the floor price of Rs10. The Dutch Auction Method determined the strike price that is at a premium of Re1 per unit.
A Real Estate Investment Trust (REIT) is a collective investment scheme that pools investors’ funds for onward investment in the real estate sector. In Pakistan, REITs operate like close-end funds, as pooled capital is invested in real estate and its units are listed on the stock exchange that investors can buy and sell every day just like ordinary stocks.
The general public will also be able to purchase units of Dolmen City REIT on June 12 at Rs11. The share of the general public constitutes one-fourth of the IPO portion of the REIT fund of Rs22.2 billion.
As many as 370 investors showed interest in the book-building portion of the IPO while the number of successful investors remained 296.
Speaking to The Express Tribune, Arif Habib Limited Senior Vice President for Corporate Finance Rafique Bhundi said investor response is in line with the overall expectations. “It’s a yield-based instrument which is why it has mainly attracted long-term investors.”
Out of the 416.9 million units provisionally allocated in the book-building phase of the IPO, high net worth individuals got a little less than 16% units. Banks were the largest recipient of units in the book-building phase with provisional allocation of 63.7% units. The allocations of corporates, brokers and foreigners were 15.6%, 4.1% and 0.6%, respectively.
Published in The Express Tribune, June 11th, 2015.
The book-building portion of the initial public offering (IPO) of Dolmen City REIT was subscribed 1.7 times on June 8 and 9, resulting in the strike price of Rs11 per unit.
Dolmen City REIT offers investors the opportunity to become unit holders of two components of the Dolmen City project – Dolmen Mall Clifton and the Harbor Front building – located on the Karachi seafront.
According to a stock notice, the lead adviser to the listing received a demand for Rs7.16 billion against the issue size of Rs4.16 billion at the floor price of Rs10. The Dutch Auction Method determined the strike price that is at a premium of Re1 per unit.
A Real Estate Investment Trust (REIT) is a collective investment scheme that pools investors’ funds for onward investment in the real estate sector. In Pakistan, REITs operate like close-end funds, as pooled capital is invested in real estate and its units are listed on the stock exchange that investors can buy and sell every day just like ordinary stocks.
The general public will also be able to purchase units of Dolmen City REIT on June 12 at Rs11. The share of the general public constitutes one-fourth of the IPO portion of the REIT fund of Rs22.2 billion.
As many as 370 investors showed interest in the book-building portion of the IPO while the number of successful investors remained 296.
Speaking to The Express Tribune, Arif Habib Limited Senior Vice President for Corporate Finance Rafique Bhundi said investor response is in line with the overall expectations. “It’s a yield-based instrument which is why it has mainly attracted long-term investors.”
Out of the 416.9 million units provisionally allocated in the book-building phase of the IPO, high net worth individuals got a little less than 16% units. Banks were the largest recipient of units in the book-building phase with provisional allocation of 63.7% units. The allocations of corporates, brokers and foreigners were 15.6%, 4.1% and 0.6%, respectively.
Published in The Express Tribune, June 11th, 2015.