KARACHI: Image REIT (IREIT), a Shariah-compliant hybrid and perpetual Real Estate Investment Trust, has successfully completed the book-building phase of its Initial Public Offering (IPO). Managed by Sinolink REIT Management Company, the offering raised Rs921.07 million at a strike price of Rs10.01 per unit.
The IPO, conducted on September 10 and 11, was oversubscribed by 2.1 times. Investor bids totaled nearly Rs1.923 billion, far exceeding the issue size of around Rs920 million. A total of 209 investors took part, with 178 securing allocations.
High Net Worth Individuals dominated the process, receiving about 44.6 million units. Institutional investors also showed strong interest. Commercial banks were allotted 6.9 million units, mutual funds over 4 million units, and securities brokers 3.5 million units. Other institutions received more than 7.6 million units.
According to details submitted to the Pakistan Stock Exchange (PSX) by Topline Securities and Growth Securities, investor bids ranged between Rs10 and Rs11.01 per unit. The bidding ceiling was set at Rs14, while the final strike price remained slightly above the floor price of Rs10.
Market analysts noted that the oversubscribed IPO reflects strong confidence in Pakistan’s REIT sector. It also highlights growing investor appetite for Shariah-compliant financial products, especially in the real estate space.
Image REIT’s portfolio includes two key projects in Karachi. One is a fully leased eight-story commercial building on Shahrah-e-Faisal. The other is a mixed-use development on Tipu Sultan Road, which includes 11 residential floors now set for completion and marketing with the IPO proceeds.
The Central Depository Company of Pakistan Limited (CDC) has been appointed as the Trustee. Market experts believe the successful IPO sets a positive precedent for future REIT listings, showing that investor demand remains strong even in a challenging economic environment.
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