Iskandar Waterfront City gets six-month extension to submit regularisation plan

• Bursa Malaysia Securities granted the extension after IWCity sought more time to finalise the regularisation plan from the original deadline of March 24.

KUALA LUMPUR (April 3): Loss-making Iskandar Waterfront City Bhd (KL:IWCITY) said it has been given a six-month extension until Sept 23 to submit its regularisation plan.

Bursa Malaysia Securities granted the extension after IWCity sought more time to finalise the regularisation plan from the original deadline of March 24, according to a bourse filing on Thursday.

The extension, however, does not limit Bursa Securities’ right to suspend trading in IWCity’s shares or to delist the company if specific conditions are not met, said the filing issued by Maybank Investment Bank Bhd on behalf of IWCity.

These conditions include failure to submit the regularisation plan by the new deadline, failure to obtain regulatory approvals, or failure to implement the plan within the allowed timeframe.

“Upon occurrence of any of the events set out above, Bursa Securities may suspend the trading of the listed securities of IWCity on the sixth market day after the date of notification of suspension by Bursa Securities and may de-list the company,” the filing said.

Nonetheless, IWCity retains the right to appeal against any potential delisting.

On March 20, the property developer announced its plans to issue new shares, conduct a private placement and reduce its share capital as part of the company’s regularisation plan to exit its affected listed issuer status.

The company has reached an agreement with Rampai Fokus Sdn Bhd, a subsidiary of its major shareholder Iskandar Waterfront Holding Sdn Bhd, to convert RM268.4 million in outstanding debts into shares.

IWCity will issue up to 725.4 million new shares at 37 sen each, which will result in Rampai Fokus becoming its largest shareholder with a 41.72% stake. Together with related parties, Rampai Fokus' shareholding will rise to 61.34%. It will also seek an exemption from making a mandatory takeover offer.

IWCity is controlled by tycoon Tan Sri Lim Kang Hoo, who owns a majority stake in Iskandar Waterfront Holding through Credence Resources Sdn Bhd. Meanwhile, the Johor state government owns a 36.87% stake in IWCity.

IWCity also intends to raise up to RM34.1 million via a placement of new shares to independent investors. Most of the funds will be used to pay contractors and professional fees, with the rest allocated for working capital.

The company will also cancel RM120 million of its share capital to offset RM47.34 million in accumulated losses, leaving retained earnings of RM69.66 million for future use.

Shares of IWCity closed unchanged at 32.5 sen on Thursday, giving the company a market capitalisation of RM299.37 million. The stock has dropped over 44% year-to-date.

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