IOI Properties soars in bourse debut

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Bursa MalaysiaMalaysia’s IOI Properties Group Bhd soared 28 per cent in its market debut at the Bursa Malaysia on January 15 as many investors grabbed their first chance to buy the stock after a restricted IPO.

The company was spun out of Malaysian tycoon Lee Shin Cheng’s plantation firm IOI Corp Bhd via a restricted sale offer to shareholders of IOI Corp, raising $580 million to repay debt.

The stock opened at 3.21 ringgit ($0.98), against an IPO price of 2.51 ringgit. The shares were trading at 3.09 as of 12:30 local time.

The listing was Malaysia’s first for 2014, when the country will see a resurgence in IPOs, including the $3 billion sale of state investor 1Malaysia Development Bhd’s energy assets. Offerings had slumped last year due to political uncertainty ahead of general elections.

IOI Properties, taken private in 2009 in a deal that then valued the company at 1.3 billion ringgit, is viewed as having a rosy long-term outlook as Malaysia’s economy continues to grow, and as the company diversifies further into Singapore and China.

The company saw its property sales double in the last business year to 1.7 billion ringgit, driven by a better performance in the southern state of Johor and in Singapore, and it is aiming to boost revenue to 2.5-3 billion ringgit in the year ending June 2015.

AMMB Holdings Bhd, RHB Capital Bhd and Standard Chartered Plc were the joint global coordinators for the deal.

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Reading Time: 1 minute

Malaysia’s IOI Properties Group Bhd soared 28 per cent in its market debut at the Bursa Malaysia on January 15 as many investors grabbed their first chance to buy the stock after a restricted IPO.

Reading Time: 1 minute

Bursa MalaysiaMalaysia’s IOI Properties Group Bhd soared 28 per cent in its market debut at the Bursa Malaysia on January 15 as many investors grabbed their first chance to buy the stock after a restricted IPO.

The company was spun out of Malaysian tycoon Lee Shin Cheng’s plantation firm IOI Corp Bhd via a restricted sale offer to shareholders of IOI Corp, raising $580 million to repay debt.

The stock opened at 3.21 ringgit ($0.98), against an IPO price of 2.51 ringgit. The shares were trading at 3.09 as of 12:30 local time.

The listing was Malaysia’s first for 2014, when the country will see a resurgence in IPOs, including the $3 billion sale of state investor 1Malaysia Development Bhd’s energy assets. Offerings had slumped last year due to political uncertainty ahead of general elections.

IOI Properties, taken private in 2009 in a deal that then valued the company at 1.3 billion ringgit, is viewed as having a rosy long-term outlook as Malaysia’s economy continues to grow, and as the company diversifies further into Singapore and China.

The company saw its property sales double in the last business year to 1.7 billion ringgit, driven by a better performance in the southern state of Johor and in Singapore, and it is aiming to boost revenue to 2.5-3 billion ringgit in the year ending June 2015.

AMMB Holdings Bhd, RHB Capital Bhd and Standard Chartered Plc were the joint global coordinators for the deal.

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