KUALA LUMPUR Jan 22 Iskandar Waterfront
Holdings Sdn Bhd, a Malaysian master property developer, is
expected to list on the local bourse in June in a deal set to
raise more than $300 million, two sources familiar with the
matter told Reuters.
The initial public offering (IPO) will see the Johor-based
company joining a handful of listed master developers in Asia,
such as the Philippines' Ayala Corp and Japan's
Mitsubishi Estate Co Ltd. Those companies typically
develop a region and have a number of property companies in
"They are targeting a market capitalisation of some 9
billion ringgit ($3 billion)," one of the sources said,
declining to be named as the matter was private. The targeted
market value will put Iskandar Waterfront nearly on par with
Malaysia's largest property developer UEM Land Holdings Bhd
The company, whose units include locally listed developer
Tebrau Teguh Bhd, has hired CIMB Investment Bank,
Deutsche Bank, JPMorgan and RHB Investment
Bank for the IPO, according to the sources.
CIMB and Deutsche Bank declined to comment. The other banks
could not be immediately reached for comment. Officials at
Iskandar Waterfront were not immediately available to comment.
Iskandar Waterfront, which counts managing director Lim Kang
Hoo and the Johor state government among its shareholders, is
the master developer of 1,620 hectares of waterfront land in
Iskandar, in the southern Malaysian state of Johor near
The development of the Iskandar region, which is being
spearheaded by Malaysia's state investment arm Khazanah Nasional
Bhd, has attracted other developers such as China's
Country Garden Holdings Co Ltd, which has bought 11
hectares of waterfront land.
Iskandar Waterfront's listing is likely to be one of the
first after a general election that Malaysia's Prime Minister
Najib Razak must call by the end of April.
Malaysia was the top IPO market Asia ex-Japan in 2012,
boosted by government privatisations and a strong economy, but
analysts and investment bankers say the IPO pipeline has slowed
ahead of the polls because of concerns over market volatility.
Malaysian stocks suffered their biggest drop in 16 months on
Monday as investors worried about the risks of what is expected
to be the Southeast Asian country's closest national election.
($1 = 3.0130 Malaysian ringgit)
(Reporting By Yantoultra Ngui; Editing by Richard Pullin)