IWH, controlled by Malaysian property tycoon Lim Kang Hoo, will issue around 600 million new shares to raise funds as part of a merger to cut debt, a senior official as well as the
company’s financial adviser told Reuters.
IWH has recently offered to buy out its listed unit Iskandar Waterfront City Berhad or IWC.
IWH’s financial adviser Astramina Advisory estimates that at 2.47 ringgit per share, it would pare down the 2 billion ringgit debt consolidated under IWH after the merger.
The company is targeting foreign corporates, it said.
The shares will be issued and privately placed to institutional investors.
Last week, IWH announced plans to buy out the 61.7 percent stake it does not already own in IWC.
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.
IWC’s market capitalisation is currently 2.26 billion ringgit, Thomson Reuters data shows but the merged company’s market capitalisation could hit 30 billion ringgit.