KUALA LUMPUR, May 14 (Reuters) - Malaysia’s IOI Corp Bhd will list its property business by the end of the year to manage the capital and growth plans of its core businesses, the company said in a stock exchange filing on Tuesday.
IOI corp will inject its entire property-related operations, worth 12.7 billion ringgit ($4.24 billion), into the new company, in exchange for 2.8 billion shares in the new entity.
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.
The announcement comes as companies move forward with their 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 ($437 million)or 2.60 ringgit per share. The company plans to list the entire issued and paid-up capital of IOI Properties, worth 3.3 billion ringgit, on the main market of the local bourse. ($1 = 2.9965 Malaysian ringgits) (Reporting By Al-Zaquan Amer Hamzah and Yantoultra Ngui, Editing by Stuart Grudgings)