Pakistan's Sharia-compatible property investment trust, IMAGE, planning to secure $3.3 million in an initial public offering (IPO)

The Pakistani real estate sector is set for a significant development as IMAGE, a Shariah-compliant real estate trust, prepares to raise Rs920 million ($3.3 million) through an initial public offering (IPO) at the Pakistan Stock Exchange (PSX).

The retail portion of the IPO will be offered to the general public, comprising 25 percent of the total issue size, which consists of 92,015,467 units of the Real Estate Investment Trust (REIT) scheme. The floor price for the IPO is PKR 10 per unit, with a price band of up to 40 percent (PKR 14 per unit).

The IPO will be conducted through a 100 percent Book Building method, a process that allows the issuer and underwriters to determine the issue price based on the demand from investors. Topline Securities and Growth Securities, renowned in the Pakistani financial market, have been appointed as joint Consultants and Book Runner for the IPO.

The proceeds from the IPO will be utilised for the completion and marketing of 11 residential floors of the Developmental REIT project. The IMAGE REIT project includes a residential-cum-commercial project in Karachi.

IMAGE generates income through two prime projects in the city: an 8-floor, fully occupied commercial building on Shahrah-e-Faisal and the aforementioned residential-cum-commercial project. The IMAGE REIT project is expected to generate both sales and rental income.

Sinolink REIT Management Company Limited, a licensed firm dedicated to developing Shariah-compliant investment opportunities in Pakistan's real estate sector, manages the IMAGE REIT scheme. The company also provides both institutional and retail investors with access to professionally managed real estate portfolios.

The Central Depository Company of Pakistan Limited (CDC) has been appointed as the Trustee of IMAGE REIT. While the firms serving as consultant and accountant for the IPO are not explicitly named, Buchalter, a notable law firm with practice areas including corporate and commercial finance, and Ernst & Young Real Estate Advisory, mentioned in a related real estate investment context, may imply advisory roles in the sector.

The IPO is set to take place at the Pakistan Stock Exchange (PSX). Investors interested in the retail portion of the IPO should note that the strike price for this section will be determined post-Book Building.

This IPO presents an exciting opportunity for investors to invest in a Shariah-compliant real estate trust, contributing to the growth and development of Pakistan's real estate sector.

Pakistan's Sharia-compatible property investment trust, IMAGE, planning to secure $3.3 million in an initial public offering (IPO)