Paradigm REIT launches Main Market IPO that could raise up to RM560 mil for WCT

• The IPO, indicatively priced at RM1 per share, comprises retail and institutional offerings, according to the prospectus unveiled on Friday.

KUALA LUMPUR (May 16): Paradigm Real Estate Investment Trust, which owns three shopping malls, has launched its initial public offering (IPO) that could raise up to RM560 million ahead of its Main Market listing.

The IPO, indicatively priced at RM1 per share, comprises retail and institutional offerings, according to the prospectus unveiled on Friday. The final price will be the lower of the retail price or the institutional price following bookbuilding.

Paradigm is now accepting applications for both retail and institutional offerings until May 23. The final price will be fixed on May 27, with the listing scheduled for June 10.

The trust itself will not get any cash proceeds as the IPO does not involve issuance of new units. The entire gross of RM560 million will go to WCT Holdings Bhd (KL:WCT) as the sponsor of the REIT.

Paradigm owns and manages Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru. The three assets worth RM2.4 billion are either fully or nearly fully occupied.

The expected annualised distribution yield for 2025 is estimated at over 7% based on the retail price of RM1 per unit.

The retail offering comprises 254.66 million units, of which 194.86 million units are offered to entitled WCT shareholders on the basis of one unit for every eight shares held, 27.80 million units for eligible persons, and 32 million units for the Malaysian public.

The institutional offering, meanwhile, consists of 305.34 million units allocated via bookbuilding with 200 million units set aside for Bumiputera investors and the remaining 105.34 million units for other institutional and selected investors.

Upon listing, WCT’s executive chairman, Tan Sri Desmond Lim, will have an indirect interest of 60.7% in Paradigm REIT through WCT.

Maybank is the principal adviser, sole managing underwriter and lead bookrunner for the IPO. CGS International and AmInvestment Bank are the joint underwriters and bookrunners. RHB Investment Bank Bhd is a joint bookrunner.

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