"IMPACT GROWTH REIT" Created a Striking Phenomenon With a 4.1-Fold Oversubscription

Published : 2014-09-18

 

‘IMPACT Growth REIT’ has captured wide attention of investors, with oversubscriptions in BOTH the institutional and public retail quota as stipulated in the prospectus. The oversubscribed institutional investor portion includes many renowned financial investors such as insurance companies, mutual funds, banks and other financial institutions.

The public retail demand is especially encouraging, with demand for subscriptions of the trust units exceeded the offering size by 4.1 fold of the initial public retail quota allocated for retail investors (in reference to the prospectus) on the closing day.  ‘IMPACT Growth REIT’ will start trading on the Stock Exchange of Thailand in early October 2014 with the final public offering price of 10.60 baht per unit, the highest in its initial suggestive price range of 10.30-10.60 baht per unit, reflecting tremendous confidence in both institutional and retail investors.

Mr Paul Kanjanapas, Managing Director of IMPACT Exhibition Management Co., Ltd., said “I’m very excited that ‘IMPACT GROWTH REIT’ has captured a huge public interest and received an excellent feedback from both institutional and retail investors with 4.1 times retail oversubscribed on the closing day of Initial Public retail quota. Due to this outrageous demand, we have decided to allocate more units for the public retail quota.  However, the cake is still not big enough for sharing with every investor, therefore a RANDOM system will be employed by the SET to fairly arrange the allotment. However, there will still be a large amount of retail investors who will not be able to subscribe and I sincerely apologize for that.

“I am also delighted to know that there are also tremendous oversubscribed demands from renowned institutional investors who are confident to invest in REIT, which significantly drive ‘IMPACT Growth REIT’, Thailand’s first ever Real Estate Investment Trust, to be more stable and credible.”

“In addition, the solid and remarkable business performance of IMPACT has shown a continued growth each year with booking of exhibition spaces throughout the year made by existing customers who organize the event every year as well as new customers. Therefore, I believe that ‘IMPACT Growth REIT’ will be a great alternative for long-term investors who are looking for steady and high-yield returns as the REIT will pay out distribution to trust holders up to four times per year which is obviously outstanding and different from other types of investment. The dividends will come from 90 percent of the net profits derived from the rental of exhibition and convention spaces. In addition, the IMPACT Growth REIT is freehold, meaning this investment does not have an expiration date and can be transferred to your descendant infinitely.”

“It has been over 15 years that Bangkok Land developed IMPACT Muang Thong Thani, the largest one-stop-solution exhibition and convention center in South East Asia, serving over 8,000 events from all over the world, having over 100 million visitors, and ready to grow its business together with the Thai economy. Combined with our potential landmark and our first-class-one-stop services, investors will have a greater opportunity to receive optimum benefits from continual growth of asset value each year as well” Mr Paul concluded.

Mr. Panop Ansusinha, Investment Banking Business Division Head, KASIKORNBANK Plc as a Joint-Lead Arranger revealed that IMPACT Growth REIT has received overwhelming response from investors that have subscribed through KBank branches. The Initial Public Offering had been oversubscribed since the first day of the subscription period with continuous flow of investors into the branches throughout the subscription period. We are proud to be part of the success of the offering of IMPACT Growth REIT as Thailand’s first REIT with Kasikorn Asset Management acting as the trustee of REIT, the first entity that has been granted trustee license in Thailand. Also, the offering is considered as another step of Thailand’s Capital Market to offer more liberalized financial product as an investment alternative to the investors. After the closing of subscription period, relevant subscription data will be compiled and passed to Settrade Dot Com Co., Ltd. (SETTRADE) for allotment of the REIT units using Random Method. Investors can check final Allotment Result via www.impactgrowthreit.com and www.settrade.com or via SET Call Center Tel. 02-229-2222. Subscription Proceeds will be refunded to subscribers who have not been allocated with the units within this September.

Mr. Montree Sornpaisarn, Chief Executive Officer of Maybank Kim Eng Securities (Thailand) Public Company Limited, said that Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) acts as Financial Advisor and Joint Lead underwriter in this engagement. We, along with KASIKORNBANK and KASIKORN Securities, successfully closed the offering with a positive feedback from both retail and institution investors, consisting mutual funds, insurance companies and local bank. The positive feedbacks echo investors’ view on IMPACT Growth REIT as a quality long term investment. Given the current volatile market situation, a financial product such as IMPACT Growth REIT deems to be a great choice for investors who look for an investment with consistent return over the long run.  IMPACT Growth REIT invested to gain an ownership of 4 exhibition and convention centers comprising IMPACT Challenger, IMPACT Exhibition, IMPACT Forum, and IMPACT Arena. Altogether, IMPACT Growth REIT will own the largest indoor exhibition and convention center in Southeast Asia. Its fully equipped facilities and one-stop- service concept makes IMPACT Muangthong Thani a leader in Thailand’s MICE industry with highest market shares. Moreover, the REIT is expected to enjoy a strong growth momentum in MICE business. IMPACT Growth REIT will be the first REIT listed on The Stock Exchange of Thailand. The listing is viewed as a great development of Thailand capital market as it offers another financial instrument available for investors, driving Thai stock market on par with other international stock market, where trust units have been traded for years.

IMPACT GROWTH REIT is opened its first trading day on the Stock Exchange of Thailand on October 1, 2014. For the establishment of the REIT, IMPACT has appointed professionals with distinguished area of expertise to arrange the transaction including Maybank Kim Eng Securities (Thailand) Plc, KASIKORNBANK Plc and Kasikorn Securities Plc as Financial Advisor and Joint Lead Arrangers and KASIKORN Asset Management Co., Ltd. as a trustee to create trust and enhance credibility among institutional and general investors.

For further media inquiries, please contact:

IMPACT Exhibition Management Co., Ltd.
Corporate Communications Department
Jintana Phongpakdee
Tel: 02 833 5061 and 092 894 9959

Inspire Communications Co., Ltd.
PR Representative for IMPACT and BLAND
Nattawan Iamsittipol     
Tel: 02 305 8710 / 081 623 6560

KASIKORNBANK PCL: Media Network Management Unit
Corporate Communications and Relations Department
Tel: 02 470 2654- 8

Maybank Kim Eng Securities (Thailand) Plc.
Investment Banking Department
Tel: 02 658 6300 ext. 1713/1715