IOI Properties Plans RM7.58 Billion REIT, Targets Up To RM1.98 Billion Listing

IOI Properties Group Bhd is set to unlock value from its prime retail, hotel and office portfolio through a proposed real estate investment trust (REIT) listing that could raise up to RM1.98 billion, in one of Malaysia’s largest market debuts this year.

According to Bloomberg, the planned REIT will house RM7.58 billion worth of assets, including flagship properties such as IOI City Mall and W Kuala Lumpur, marking a major step in the developer’s capital recycling strategy.

Under the proposal, IOI Properties will inject the assets into the REIT in exchange for 5.5 billion units priced at 90 sen each, alongside RM2.65 billion in cash. It will also offer 2.2 billion units to investors via retail and institutional placements ahead of the listing.

At the indicative pricing, total proceeds could reach RM1.98 billion, positioning the deal as Malaysia’s second-largest listing in 2026 after Sunway Healthcare Holdings Bhd’s US$731 million IPO.

Post-listing, IOI Properties will retain a 60% stake, ensuring continued control while benefiting from improved asset liquidity and recurring income exposure through the REIT structure.

The group said the listing will strengthen its balance sheet by reducing debt, funding new developments, and expanding investment capacity, while giving the REIT direct access to capital markets for future acquisitions.

The transaction is targeted for completion by the fourth quarter, pending approvals, with Maybank Investment Bank Bhd and AmInvestment Bank Bhd acting as joint advisors, alongside DBS Bank as global coordinator.