KUALA LUMPUR (March 6): Prolintas Infra Business Trust on Wednesday began taking orders from investors for an initial public offering (IPO) that will gross RM445.3 million and is set for the country's first listing of a business trust.

The IPO, priced at up to 95 sen per share, is backed by eight of the so-called cornerstone investors that include Permodalan Nasional Bhd, Lembaga Tabung Haji, Maybank Asset Management Sdn Bhd and Kenanga Investors Bhd.

Cornerstone investors typically agree to buy a large chunk of IPO shares ahead of the IPO, and their presence helps in boosting the company's appeal to other potential investors.

The offering will close on March 12, and the listing is scheduled for March 25. The final IPO price, to be determined on March 13, will be equal to the lower of the retail price of 95 sen per share or the institutional price, according to the prospectus.

The IPO comprises an offer-for-sale of up to 468.7 million existing units, of which up to 422.95 million units have been allocated to institutional and select investors through bookbuilding. Also on offer are up to 45.75 million units under its retail tranche to the public, directors and other eligible individuals.
The eight cornerstone investors have agreed collectively to acquire 299.85 million IPO units at 95 sen per share as part of the institutional offering.

The funds raised from the IPO will go entirely to Projek Lintasan Kota Holdings Sdn Bhd owned by Permodalan Nasional Bhd. Prolintas Infra, which owns four highway concessions, will not get any of the proceeds.

AmInvestment Bank Bhd is the principal adviser for the IPO as well as the joint bookrunner and underwriter with CIMB Investment Bank Bhd and Maybank Investment Bank Bhd. RHB Investment Bank Bhd is also a joint underwriter.

Price RM0.95. Last year FYE rugi but got cornerstone investors. Still considering whey it’s good or not.

Those investors more towards dividend only. They don’t care about ipo price.

Open red for sure