Al-Salam Reit IPO sets sail amid Malaysia crisis

Malaysia is set to usher in its fourth Islamic Reit but political and economic chaos domestically may make a deal difficult to execute.

Bankers running the $60 million initial public offering for JCorp's real estate investment trust Al-Salam Reit hope a successful deal will give investors something to cheer as Malaysia grapples with political and economic uncertainties.

The listing of Al-Salam Reit, which is sponsored by the Johor state investment arm, is another important milestone for the Malaysian government in its efforts to promote Kuala Lumpur as a global centre for Islamic finance, a source familiar with the offering told FinanceAsia.

The IPO is likely to be highly domestic, though, due to its relatively small size and the Reit's underlying local assets and also because a weaker...

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