“Paradigm REIT prices IPO at RM1 per unit; retail oversubscription mixed, institutional portion fully taken up. Bursa Malaysia listing set for June 10.“
Kuala Lumpur, 29th May 2025, 01.28pm – Paradigm Real Estate Investment Trust (Paradigm REIT) has priced its initial public offering (IPO) at RM1.00 per unit, as previously guided, ahead of its scheduled listing on the Main Market of Bursa Malaysia on June 10, 2025.
Despite subdued interest from segments of the retail market, the institutional portion of the offering saw strong demand, with all 426.59 million units fully subscribed, including reallocated units from undersubscribed tranches.
Retail Response Mixed; Non-Bumiputera Tranche Oversubscribed
According to a statement from the issuing house on Thursday, the public offering of 32 million units to Malaysian investors drew applications for 79.78 million units, translating into an oversubscription rate of 1.49 times.
However, the Bumiputera portion underperformed, receiving applications for just 4.65 million units, far below the 16 million units allocated. These unfilled units were subsequently clawed back and redistributed.
By contrast, the non-Bumiputera tranche was oversubscribed by 3.7 times, reflecting stronger appetite among general retail investors.
Restricted Offers See Lukewarm Uptake
Other components of the retail offering experienced weaker demand:
- The restricted offer for sale to WCT Holdings Bhd shareholders saw only 73.62 million units taken up, compared to 194.86 million units on offer.
- The pink form offering for eligible persons attracted subscriptions for 8.43 million units, out of 27.79 million units available.
The unsubscribed units from these categories were absorbed by institutional investors, ensuring full allocation ahead of listing.
RM560 Million Proceeds to Sponsor WCT Holdings
Paradigm REIT’s IPO will raise RM560 million in gross proceeds, but none will be directed to the REIT itself, as the listing involves a pure offer-for-sale structure. All proceeds will go to WCT Holdings, the sponsor and substantial unitholder.
Upon listing, Tan Sri Desmond Lim Siew Choon, via WCT Holdings, will hold a 60.7% stake in Paradigm REIT.
Portfolio and Yield Outlook
Paradigm REIT’s initial portfolio comprises three major retail assets:
- Paradigm Mall Petaling Jaya
- Paradigm Mall Johor Bahru
- Bukit Tinggi Shopping Centre
These malls have a combined valuation of RM2.4 billion and are reportedly fully or nearly fully occupied. The REIT is forecasting an annualised distribution yield of over 7% for FY2025, based on the IPO price of RM1.00 per unit — making it one of the higher-yielding retail-focused REITs in Malaysia.
Deal Advisors
The IPO is being led by Maybank Investment Bank, acting as principal adviser, sole managing underwriter, and lead bookrunner. CGS International and AmInvestment Bank serve as joint underwriters and bookrunners, while RHB Investment Bank Bhd is a joint bookrunner.
