IOI Properties proposes 2.162b share distribution
KUALA LUMPUR: IOI Properties Group Bhd, which is seeking a relisting on Bursa Malaysia, has proposed the distribution of 2.162 billion of its shares held by its parent IOI Corp Bhd.
According to its draft prospectus posted on the Securities Commission website yesterday, the distribution-in-specie would be on the basis of one IOI Properties share for every three IOI Corp shares.
IOI Properties said it would not be raising any funds from the listing exercise as it would not be issuing any new shares.
On its dividend policy, it is dependent on profits made and excess funds not required to be retained to fund its business.
IOI Properties is set to become one of the biggest listed property companies in the country with total assets of RM15 billion. It has various projects which will be launched in strategic locations such as Iskandar Malaysia, the Klang Valley, Singapore and Xiamen in China.
As the underlying value of its property assets is unlocked, IOI Corp executive chairman Tan Sri Lee Shin Cheng reportedly said he is confident that the group's property arm will achieve an operating profit of not less than RM1 billion per year in the coming three years.
In the year ended June 30 2012, IOI Corp's property segment registered RM704 million operating profit.
About 50 per cent of the property income is expected to be derived from domestic market and the other half, from overseas business.
It was reported that IOI Corp shareholders are poised to benefit from lower entry price in its property division.
With the soon-to-be relisted company's indicative issue price to be at least RM4.46, each IOI Corp shareholder will pay 30 per cent less of the price, or a discount of RM1.49.
Back in 2009, IOI Corp, the country's fourth largest plantation company, took IOI Properties Bhd private in a RM1.3 billion deal, or RM2.60 per share.
Publish date: 12/07/13