IOI Properties to be first IPO next year

IOI Properties to be first IPO next year
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 26 December 2013 14:06

KUALA LUMPUR (Dec 26): The initial public offering (IPO) of IOI Properties Group Bhd (IOIPGB) will be the first next year, with a tentative listing date of Jan 15.

In a filing to the stock exchange on behalf of IOI Corporation Bhd on Thursday, joint principal advisors AmInvestment Bank Berhad and RHB Investment Bank Berhad said the opening of application for IOIPGB shares was Dec 26 and closing of application on Jan 2 next year.

IOI Corporation had on Dec 23 announced its internal reorganisation involving its plantation and resource based manufacturing assets and companies.

The reorganisation is as follows:

IOI Corp to transfer its entire equity interests in Pan-Century Oleochemicals
and Pan-Century Edible Oils, both wholly-owned subsidiaries of IOI Corp, to IOI Oleochemical Industries (IOI Oleo) via an execution of a sale and purchase agreement (SPA) for considerations of RM360 million and RM460 million respectively.
IOI Oleo to transfer its entire equity interests in four plantation companies to IOI Corp via an execution of a SPA for a total consideration of RM2.08 billion.
IOI Corp to transfer seven estates located in Peninsular Malaysia and part of Paya Lang estate measuring in total of about 15,396 ha and its entire equity interest in IOI Pelita Plantation, a 70% owned subsidiary company, to IOI Plantation via an execution of SPAs for considerations of RM1.02 billion and RM44.3 millon respectively.
IOI Corp to transfer three estates measuring in total of about 7,485 ha and a mill, all located in Sabah to Morisem, a wholly-owned subsidiary of IOI Corp, via an execution of SPAs for a consideration of RM44 million.
Affin IB Research in a note Dec 24 maintained its Reduce rating on IOI Corp at RM4.56 with a target price of RM4.27 and said the corporate exercise was to enable IOI Corp Group to streamline the structure of its plantation and resource based manufacturing businesses – with the IOI Oleo Group becoming a pure resource based manufacturing group and IOI Corp becoming a pure investment holding company.

“The proposed internal restructuring will not have any effect on the issued and paid-up capital and substantial shareholders’ shareholdings or any material effect on the earnings as well as consolidated net asset and gearing of the IOI Corp Group, it said.