Pakistan's Islamic property investment vehicle, IMAGE, aiming to gather $3.3 million through an Initial Public Offering (IPO)
The Pakistani real estate market is presenting an opportunity for investors, as IMAGE REIT, a Shariah-compliant real estate trust, has launched an initial public offering (IPO) of Rs920 million ($3.3 million) at the Pakistan Stock Exchange (PSX).
Managed by Sinolink REIT Management Company Limited, a licensed firm dedicated to developing Shariah-compliant investment opportunities in Pakistan's real estate sector, the IPO offers investors a chance to capitalize on the recovering real estate market.
The IPO will be conducted entirely through a Book Building method, with the company's Central Depository Company of Pakistan Limited (CDC) appointed as the Trustee of IMAGE REIT. The retail portion of the IPO will comprise 25 percent of the total issue size.
The floor price for the IPO is set at PKR 10 per unit, with a price band that could rise up to 40 percent, reaching PKR 14 per unit. The IPO will consist of 92,015,467 units of the Real Estate Investment Trust (REIT) scheme.
The proceeds from the IPO will be utilized for the completion and marketing of 11 residential floors of the Developmental REIT project. The company generates income through two prime projects in Karachi: an 8-floor, fully occupied commercial building on Shahrah-e-Faisal and a residential-cum-commercial project.
Sinolink REIT Management Company Limited, the scheme manager, provides access to professionally managed real estate portfolios for both institutional and retail investors. Topline Securities and Growth Securities have been appointed as the joint Consultants and Book Runner for the IMAGE REIT IPO.
The strike price for the retail portion of the IPO will be determined post-Book Building. The retail portion of the IPO will be offered to the general public.
IMAGE, a Pakistani real estate trust, is planning to raise funds for its ongoing projects through this IPO, offering investors a chance to be part of its growth story.
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