Image REIT (IREIT), a Shariah-compliant hybrid and perpetual Real Estate Investment Trust (REIT), managed by Sinolink REIT Management Company, has successfully concluded the book-building phase of its Initial Public Offering (IPO), raising Rs 921.07 million at a strike price of Rs 10.01 per unit.
The offering, conducted over two days on September 10 and 11, was oversubscribed by 2.1 times, reflecting strong investor appetite in Pakistan’s growing real estate investment trust (REIT) market.
The IPO attracted bids worth approximately Rs 1.923 billion against an issue size of around Rs 920 million. In total, 209 investors participated in the process, with 178 securing allocations.
High Net Worth Individuals led the charge, provisionally receiving 44.6 million units – by far the largest share. Institutional participation was also notable, with commercial banks allocated 6.9 million units, mutual funds receiving over 4 million, and securities brokers picking up 3.5 million units. Other institutional investors were allotted more than 7.6 million units.
According to documents submitted to the Pakistan Stock Exchange (PSX) by Topline Securities and Growth Securities – the lead and joint consultants respectively – investor bids fell between Rs 10 and Rs 11.01 per unit, though the bidding cap was set at Rs 14. The final strike price settled marginally above the floor price of Rs 10.
The IPO marks a significant milestone for Image REIT, which is backed by two major developments in Karachi – a fully leased 8-story commercial building on Shahrah-e-Faisal and a mixed-use project on Tipu Sultan Road.
Proceeds from the IPO will fund the completion and marketing of 11 residential floors within the developmental REIT project. The Central Depository Company of Pakistan Limited (CDC) has been appointed as the Trustee.
