Bursa grants six-month time extension to IWCity to submit regularisation plan

• Bursa has the right to proceed to suspend the trading of the listed securities of IWCity and to de-list the company if IWCity fails to submit the regularisation plan before Sept 24, fails to obtain approval from any of the regulatory authorities necessary for the implementation of its regularisation plan or fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.

KUALA LUMPUR (April 19): Bursa Malaysia Securities Bhd (Bursa Malaysia) has granted a time extension of six months to Iskandar Waterfront City Bhd (IWCity) to submit its regularisation plan following the company’s status as a Paragraph 8.03A affected listed issuer.

Paragraph 8.03A affected listed issuer means that the obligations of the affected listed issuer remain the same as that of a Practice Note 17 (PN17) issuer, including the requirement to submit and implement a regularisation plan within the prescribed time frame.

However, taking into consideration that there are differences between these listed issuers vis-a-vis a PN17, an affected listed issuer will not be tagged or classified as a ‘PN17’ company, according to Bursa’s FAQ.

As such, IWCity said it has time until Sept 24 to submit the plan.

Bursa has the right to proceed to suspend the trading of the listed securities of IWCity and to de-list the company if IWCity fails to submit the regularisation plan before Sept 24, fails to obtain approval from any of the regulatory authorities necessary for the implementation of its regularisation plan or fails to implement its regularisation plan within the time frame or extended time frame stipulated by any of the regulatory authorities.

Upon any occurrences of the three events, Bursa may suspend the trading of IWCity on the sixth market day after the date of notification of suspension by Bursa Securities and may delist the company, subject to the company’s right to appeal against the delisting.

On March 25, 2022, IWCity received a letter from Bursa to perform an immediate assessment and reassessment of the company due to a shortfall in revenue which triggered Paragraph 8.03A.

Based on its fourth quarter financial year 2021 financial results, the company recorded a yearly revenue of RM22.15 million on a consolidated basis.

Pursuant to the computation under Paragraph 8.03A(7)(b)(i) of the Main Market Listing Requirements, IWCity should record revenues of approximately RM37.7 million, representing a shortfall of approximately RM16 million.

IWCity shares fell 3.6% or 1.5 sen to close at 40.5 sen, valuing the company at RM373.1 million.