KUALA LUMPUR: Malaysia’s IOI Corporation Bhd will list its property business in a RM1.9 billion (US$634.07 million) initial public offering (IPO) by September, the company said yesterday, adding to a post-election flurry of stock debuts.

IOI Corp will inject its property-related operations, worth RM12.9 billion, into IOI Property Group Bhd, in exchange for 3.2 billion shares in the new entity.

IOI Corp would distribute up to 2.2 billion shares – two-thirds of the new company’s outstanding stock – to its own shareholders.

It would offer one share in the new company for every three shares in IOI Corp, and additional shares would be available at a 30 per cent discount, it said.

The remaining third of IOI Property Group will be sold to selected shareholders, raising RM1.8 billion towards paring down the company’s debt.

The exercise will result in IOI Corp’s property and plantation businesses being listed as two separate companies.

“For the next three years, we project an operating profit of at least RM1 billion a year, not only from Malaysia but Singapore and China too,” IOI Corp chairman Lee Shin Cheng told a news conference.

“IOI Property would manage projects with a total gross development value of RM16 billion over the next three years, Lee added.

It will hold RM17.9 billion worth of property assets, based on valuations as at January 2013.

“The property business is on a stronger footing now. We have built our landbank in strategic locations, so it is about time we unlock their value,” Lee said. — Reuters