KUALA LUMPUR: The general public portion of the initial public offering (IPO) of al-Salam Real Estate Investment Trust (REIT), en route to list on the Main Market of Bursa Malaysia on Sept 29, has been oversubscribed by 2.96 times.

In a statement yesterday, Malaysian Issuing House Sdn Bhd said the IPO received 2,442 applications totalling 45.92 million units for 11.6 million units that were available for public subscription.

A total of 1,285 applications for 18.34 million offer units were received for the bumiputera category which represents an oversubscription of 2.16 times; while under the public category, 1,157 applications for 27.58 million offer units were received for an oversubscription of 3.76 times.

“Pursuant to the clawback and reallocation of provisions as set out in al-Salam REIT’s prospectus dated Sept 4, a total of 34.32 million offer units will be clawed back from the institutional offering and reallocated to the retail offering.

“Accordingly, the joint placement agents confirmed that 240.76 million offer units made available under the private placement to selected investors have been fully placed out,” said Malaysian Issuing House.

Al-Salam is the second syariah-compliant REIT by Johor Corp after al-'Aqar Healthcare REIT.

This article first appeared in The Edge Financial Daily, on September 22, 2015.