Sinolink REIT Management Company has successfully raised Rs. 921.07 million through the sale of 92.02 million units of Image REIT during a two-day book-building process at the Pakistan Stock Exchange (PSX).
The book-building concluded on Thursday, marking a significant milestone for the country’s real estate investment trust (REIT) market.
The REIT achieved a strike price of Rs. 10.01 per unit, slightly above the floor price of Rs. 10 set at the start of the bidding. While the price ceiling was capped at Rs. 14 per unit, investor bids ranged between Rs. 10 and Rs. 11.01 per unit.
According to Topline Securities, the lead consultant and book runner for the IPO, the offering was oversubscribed by more than two times. Investors applied for 186.80 million units, far exceeding the 92.02 million units available. Growth Securities also played a pivotal role as the joint consultant and book runner for the offering.
Image REIT’s income is backed by two high-value projects in Karachi: an 8-floor fully leased commercial building on Shahrah-e-Faisal and a mixed-use residential and commercial development on Tipu Sultan Road.
“The funds raised through the IPO will be directed towards the completion and marketing of 11 residential floors of the Developmental REIT project. The Central Depository Company of Pakistan Limited (CDC) has been appointed as the Trustee of Image REIT,” the statement added.
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