IWCity gains traction on revived hopes for Bandar Malaysia deal

KUALA LUMPUR (July 24): Iskandar Waterfront City Bhd (IWCity), which has been in the limelight since early May saw yet another spike, as high as 6.08%, in interest with 5.4 million shares traded at opening today.

At 10.24am, the stock pared some of its gains and was up three sen or 2.03% to RM1.51 with 16.67 million shares exchanging hands, giving it a market capitalisation of RM1.24 billion. IWCity was also the eighth most active counter on Bursa Malaysia.

Dealers and analysts have been somewhat reluctant to comment on the affairs on IWCity as well as what may have contributed to the active interest in its stock.

In a filing to Bursa Malaysia last Friday, the company said its substantial shareholder Creed Asia Development (M) Sdn Bhd had disposed 0.33% or 2.73 million shares in IWCity.

Currently, it has a total stake of 6.44% or 53.94 million shares in IWCity.

Last Friday, it was also reported that its major shareholder Iskandar Waterfront Holdings Sdn Bhd (IWH) might get a second chance to develop Bandar Malaysia.

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.

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 has been seen as a front runner for the Bandar Malaysia project.

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 was "null and void with immediate effect."

The Malaysian Government via the Finance Ministry owns TRX, a former unit of 1Malaysia Development Bhd. 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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