TPL REIT 1 IPO sees 1.46x oversubscription

May 08, 2024 (MLN): The Initial Public Offering (IPO) of Pakistan’s first Shariah-compliant hybrid REIT (TPL REIT 1) witnessed an overwhelming response, with the base offer being oversubscribed by 1.46 times.

According to the details made available by Next Capital, the manager to offer, 1,470 applications were received for a total of 33,473,295 units.

This reflects an oversubscription of 10,535,795 units compared to the IPO’s base offer of 22,937,500 units.

As the oversubscription was within the quantum of the Green Shoe Option, set at 22,387,000 units, all applications and allotted units were accepted, subject to review and scrutiny by the Registrar as per the defined procedures.

The sale of 33,473,295 units in the IPO translates into a sum of Rs588.8 million for the company.

The IPO's manager received these subscription details from the Banker to the Offer, PSX e-IPO, and CDC e-IPO, as compiled by Digital Custodian Company Limited (Registrar).

It is crucial to note that the public subscription for the IPO of TPL REIT Fund I took place on May 02 and 03, 2024 (both days inclusive).

Summary of Subscription Received

About TPL REIT Fund I

TPL REIT is part of TPL Group which is Pakistan’s Leading Tech-Driven Conglomerate with businesses across a variety of sectors.

The group has demonstrated its real estate expertise through its flagship project called ‘Centrepoint’ which yielded an ROI of 130%.

The Fund has invested in a diversified pool of real estate assets including Master Planned Community, Premium-End Luxurious Residential Tower and first of its kind Technology Park. 

Considering that the fund is Perpetual, TPL RMC is evaluating multiple other projects for addition to the TPL REIT.

All real estate investments are set to follow the best sustainability and environment principles and shall achieve at least one of the prominent green budding certifications such as EDGE, LEED, BREEAM or WELL for all its real estate development projects.

Existing investors include TPL Properties: Pakistan’s leading Real Estate Developer & Operator and 8 leading commercial banks of Pakistan including Habib Bank Limited, National Bank of Pakistan, The Bank Of Punjab, Bank AL Habib, Bank Alfalah, HabibMetro, Soneri Bank Limited and Askari Bank.

Moreover, dividends will be distributed at the completion of each project to avail tax exemption under the law. All approvals for One Hoshang are in place and construction is ongoing, hence, the first dividend is expected in FY26, according to TPLP.

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