Home News Iskandar Waterfront to raise RM1.5 billion to shrink debt

Iskandar Waterfront to raise RM1.5 billion to shrink debt

Extract from Borneo Post (18/3/2017)

KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH), which recently offered to buy out its listed unit Iskandar Waterfront City Bhd (IWC), said the merged entity was looking to raise about RM1.5 billion this year by issuing new shares.

IWH, controlled by Malaysian property tycoon Tan Sri Lim Kang Hoo, will issue around 600 million new shares to raise funds as part of the merger to cut debt, a senior official as well as the company’s financial adviser told Reuters.

While the price for the shares has not been finalised, IWH’s financial adviser Astramina Advisory estimates that at RM2.47 per share – a 10 per cent discount to IWC’s closing price on Wednesday – the merged entity would raise about RM1.5 billion.

“This would substantially pare down the RM2 billion ringgit consolidated under IWH after the merger. A lot of parties have expressed interest (for the placement), some of them are foreign corporates,” said Wong Muh Rong, managing director for Astramina Advisory.

The shares will be issued and privately placed to institutional investors, she said.

Last week, IWH announced plans to buy out the 61.7 per cent stake it does not already own in IWC. It will then assume IWC’s listed status on Bursa Malaysia. Shares of IWC have jumped as much as 59 per cent since the announcement.

The merger deal is expected to be completed in six to nine months, after which IWH targets a secondary listing in Hong Kong, China or Singapore within 12 months. — Reuters