IWCity up on renewed interest amid Bandar Malaysia talk

KUALA LUMPUR (Aug 3): Iskandar Waterfront City Bhd (IWCity) rose as much as 18 sen or 15% on renewed investor interest amid speculation that the Malaysian Government may soon announce Bandar Malaysia's master developer.

The planned Bandar Malaysia project is on a 194ha (486 acre/21.17 million sq ft) tract within the old airport site in Sungai Besi here.

IWCity has been in the spotlight in anticipation that its major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH) might get a second chance to develop Bandar Malaysia.

Speculation that IWH may get another chance to develop Bandar Malaysia followed news that China-based Dalian Wanda Group Co Ltd came under regulatory pressure on how it financed its global acquisitions. Dalian Wanda was seen as a front runner for the Bandar Malaysia project.

At Bursa Malaysia today, IWCity shares rose to their highest so far at RM1.41. At 12:30pm, the stock settled at RM1.37 for a market capitalisation of RM1.14 billion.

IWCity, which was Bursa Malaysia's second most-active counter, was also the third-largest gainer.

A fund manager said, "This may due to renewed investor interest in the stock following recent news brewing on Bandar Malaysia."

A remisier said, "There is a possibility that the market is speculating on a contract to be concluded."

Bandar Malaysia has been in the spotlight after TRX City Sdn Bhd alleged on May 3 this year its planned sale of a 60% stake in Bandar Malaysia to IWH CREC Sdn Bhd was "null and void with immediate effect".

The Malaysian Government via the Finance Ministry owns TRX, a former unit of 1Malaysia Development Bhd (1MDB). The Government also owns 100% of 1MDB. IWH and China Railway Engineering Corp (M) Sdn Bhd jointly own IWH CREC. — theedgemarkets.com

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