AME Elite inks underwriting agreement with Hong Leong Investment Bank for REIT’s IPO

• Hong Leong Investment Bank is appointed as the principal adviser, sole underwriter and joint bookrunner, together with RHB Investment Bank Bhd.
• The IPO entails an offering of 254.8 million units, representing 49% of AME REIT’s total 520 million units.

KUALA LUMPUR (July 27): AME Elite Consortium Bhd has entered into an underwriting agreement with I REIT Managers Sdn Bhd, RHB Trustees Bhd and Hong Leong Investment Bank Bhd for the initial public offering (IPO) of AME Real Estate Investment Trust (REIT).

In a statement on Wednesday (July 27), AME Elite said Hong Leong is appointed as the principal adviser, sole underwriter and joint bookrunner, together with RHB Investment Bank Bhd.

The IPO entails an offering of 254.8 million units, representing 49% of AME REIT’s total 520 million units.

Hong Leong will underwrite 18.2 million units, comprising 10.4 million units made available to the Malaysian public and 7.8 million units to eligible directors and employees of AME Elite and its subsidiaries.

I REIT Managers, which is wholly-owned by AME Elite, is the manager of AME REIT, whose trustee is RHB Trustees.

AME REIT is set to be an Islamic industrial REIT that will have an initial portfolio of 31 industrial properties with ongoing leases and tenancies to various local and foreign companies, as well as three workers' dormitories that mainly cater to the workers of AME Elite’s industrial parks tenants.

As at July 15, all 31 industrial properties and three workers’ dormitories were 100% tenanted.

AME REIT will be the main vehicle representing the property investment activity for AME Elite upon its debut on the Main Market.

“Today’s underwriting signing marks another significant milestone in the IPO journey of AME REIT, bringing us one step closer to listing our industrial and industrial-related assets, and enabling us to meet our target to complete the exercise by the third quarter of 2022,” said I REIT Managers Chairman and Executive Director Simon Lee Sai Boon.

Shares of AME Elite gained two sen or 1.25% at RM1.62 per share on Wednesday, giving it a market capitalisation of RM1.04 billion.