(Corrects IPO size to 1.9 billion ringgit in bullet points and
* IOI Corp to list property arm
* To raise 1.9 billion ringgit to pare down debt
* Aims for 1 bln ringgit in annual operating profit
KUALA LUMPUR, May 14 Malaysia's IOI Corp Bhd
will list its property business in a 1.9 billion
ringgit ($634.07 million) initial public offering by September,
the company said on Tuesday, adding to a post-election flurry of
IOI Corp will inject its property-related operations, worth
12.9 billion Malaysian ringgit, into IOI Property Group Bhd, in
exchange for 3.2 billion shares in the new entity.
IOI Corp will distribute up to 2.2 billion shares -
two-thirds of the new company's outstanding stock - to its own
shareholders. It will offer one share in the new company for
every three shares in IOI Corp, and additional shares will be
available at a 30 percent discount, it said.
Following the announcement, shares of IOI Corp rose as much
as 6.9 percent to a two-year high of 5.70 ringgit.
The remaining third of IOI Property Group will be sold to
selected shareholders, raising 1.8 billion ringgit towards
paring down the company's debt.
IOI Corp is the second-largest palm oil producer in Malaysia
and one of the the three largest property developers in the
country, according to its website. The exercise will result in
IOI Corp's property and plantation businesses being listed as
two separate companies.
"For the next three years, we project an operating profit of
at least 1 billion ringgit a year, not only from Malaysia but
Singapore and China too," IOI Corp Chairman Lee Shin Cheng told
a news conference.
IOI Property will manage projects with a total gross
development value of 16 billion ringgit over the next three
years, Lee added. It will hold 17.9 billion ringgit worth of
property assets, based on valuations as at Jan. 2013.
"The property business is on a stronger footing now. We have
built our landbank in strategic locations, so it is about time
we unlock their value," Lee said.
The deal is advised by RHB Investment Bank and AmInvestment
The announcement comes as companies move forward with their
listing plans due to easing political uncertainty after
Malaysia's general elections last week.
Among the deals that are expected to be launched in June are
the $300 million listing of long haul carrier AirAsia X Bhd and
the $337 million flotation of energy and water firm Ranhill
Energy and Resources Bhd.
IOI Corp privatised IOI Properties in 2009 in a deal worth
1.3 billion ringgit or 2.60 ringgit per share.
($1 = 2.9965 ringgit)
(Reporting By Al-Zaquan Amer Hamzah and Yantoultra Ngui,
Editing by Stuart Grudgings and Jacqueline Wong)