IWCity extends loss, tumbles 23.6% in active trade

KUALA LUMPUR (May 9): Iskandar Waterfront City Bhd (IWC) shares took more beating this morning in active trade and fell 23.61% from the sustained negative vibes from the collapsed Bandar Malaysia deal.

At 9.13am, IWC lost 51 sen to RM1.65 with 96.8 million shares traded.

Yesterday, IWC's share price took a nosedive and hit limit-down shortly after the opening bell as it resumed trading, wiping out RM759.83 million of market capitalisation.

The heavy selldown on the company, which is controlled by Tan Sri Lim Kang Hoo, was much expected but no thanks to the termination of the sale of 60% stake in Bandar Malaysia Sdn Bhd to IWH CREC Sdn Bhd, in which the property tycoon also holds an equity interest.

IWH CREC is a 60:40 joint venture between Lim’s flagship Iskandar Waterfront Holdings Bhd (IWH) and state-owned China Railway Engineering Corp (M) Sdn Bhd (CREC). Lim holds a 63% stake in IWH, while Kumpulan Prasarana Rakyat Johor Sdn Bhd owns the remaining 37%.

IWH’s equity interest in Bandar Malaysia was seen as the crown jewel of the proposed merger exercise between the company and its sister company IWC. IWC shares were well sought-after as it was seen as a proxy to ride on the growth potential of Bandar Malaysia. — theedgemarkets.com

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