Iskandar Waterfront delays IPO to end-2014

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development-riversideIskandar Waterfront, a Malaysian development company tasked with developing a Malaysian city to rival neighbouring Singapore, has postponed a $300 million stock listing on concerns that measures to rein in property prices would slow demand, Reuters reported.

Iskandar Waterfront, part-owned by the Malaysian government in the southern Johor state, is raising funds to develop a waterfront that faces Singapore and comes complete with upscale apartments, malls and a marina. But the developer  is concerned property sales will slow after the government announced it late October 2013 that it will raise real property gains tax from 2014 and double the minimum price at which foreign investors can buy property.

The company will now conduct an initial public offering in the fourth quarter of 2014 rather than the first, betting on a more upbeat capital market to attract investors.

This is the second time Iskandar Waterfront has delayed its IPO. It originally planned to list in the current quarter but delayed as it needed more time to value its assets.

Property prices have risen about a third in the past three years, with even steeper rises in hot spots such as parts of Johor state where Iskandar Waterfront is based. Iskandar Waterfront, whose units include locally listed developer Tebrau Teguh Bhd, is the developer of 1,620 hectares of waterfront land in Johor state’s Iskandar region, a development spearheaded by state investment arm Khazanah Nasional Bhd.

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Reading Time: 1 minute

Iskandar Waterfront, a Malaysian development company tasked with developing a Malaysian city to rival neighbouring Singapore, has postponed a $300 million stock listing on concerns that measures to rein in property prices would slow demand, Reuters reported.

Reading Time: 1 minute

development-riversideIskandar Waterfront, a Malaysian development company tasked with developing a Malaysian city to rival neighbouring Singapore, has postponed a $300 million stock listing on concerns that measures to rein in property prices would slow demand, Reuters reported.

Iskandar Waterfront, part-owned by the Malaysian government in the southern Johor state, is raising funds to develop a waterfront that faces Singapore and comes complete with upscale apartments, malls and a marina. But the developer  is concerned property sales will slow after the government announced it late October 2013 that it will raise real property gains tax from 2014 and double the minimum price at which foreign investors can buy property.

The company will now conduct an initial public offering in the fourth quarter of 2014 rather than the first, betting on a more upbeat capital market to attract investors.

This is the second time Iskandar Waterfront has delayed its IPO. It originally planned to list in the current quarter but delayed as it needed more time to value its assets.

Property prices have risen about a third in the past three years, with even steeper rises in hot spots such as parts of Johor state where Iskandar Waterfront is based. Iskandar Waterfront, whose units include locally listed developer Tebrau Teguh Bhd, is the developer of 1,620 hectares of waterfront land in Johor state’s Iskandar region, a development spearheaded by state investment arm Khazanah Nasional Bhd.

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