KUALA LUMPUR (May 14): PLANTATION firm IOI Corp Bhd plans to list its real estate-based operations separately under IOI PROPERTIES Group Sdn Bhd on the Malaysian stock exchange.

In a statement to Bursa Malaysia today, IOI Corp said IOI Properties will have an expanded issued share base of some 3.28 billion shares upon listing.

"The proposed listing will enable ListCo (IOI Properties) to gain direct access and participation in the equity market for fund raising in order to provide financial flexibility for the ListCo, to pursue future expansion and growth opportunities" IOI Corp said.

Under the exercise, IOI Corp plans to sell its property assets worth a collective RM 12.88 billion to IOI Properties.  In return, IOI Properties will issue about 3.28 billion new shares to IOI Corp.

IOI Corp will, in turn, distribute to its shareholders 66% of the new IOI Properties shares under a distribution-in-specie. The exercise will be done on the basis of one IOI Properties share for every three IOI Corp units held.

IOI Corp will also offer for sale its remaining IOI Properties shares on a one-for-six basis.

"IOI Corp will cease to be a shareholder of ListCo upon completion of the proposed demerger and proposed listing," the firm said.

According to IOI Corp, the issue price for ListCo shares will be fixed at a later date. The price will take into consideration  the enlarged share capital and net assets of ListCo.

"Strictly for illustration purposes and based on the proposed enlarged share capital of ListCo of up to approximately 3.287 billion shares, the indicative issue price for the proposed disposals amounts to at least approximately RM4.46 per ListCo Share," IOI Corp said.