SD Property shares fall behind at debut

KUALA LUMPUR (Nov 30): Sime Darby Bhd and Sime Darby Plantation (SD Plantation) both made strong debuts at the opening bell today as pure plays, but Sime Darby Property Bhd's (SD Property) share price fell behind the other two entities.

At 9am, compared with its respective reference prices, Sime Darby shares were up 55 sen or 29.7% to RM2.40, while SD Plantation rose as much as 1 sen or 0.18% to RM5.60 and SD Property was down 20 sen to RM1.30, marking a 13% decline.

When asked about the fall in its share price, SD Property and Permodalan Nasional Bhd group chairman Tan Sri Abdul Wahid Omar replied saying real value creation for the group boils down to not just about its share price performance today.

“Real value creation is not about today, it is about the future.

“We don’t look at individual pricing of the entities, rather the combined pricing of the three entities.. the opening price of the three entities combined is RM9.30, which is a 4% increase from [its combined reference price of RM8.94],” he told reporters at the press conference, after the listing of the three entities today.

A total of 243,700 shares exchanged hands for SD Plantation, while 370,800 shares traded for SD Property on its Main Market debut on Bursa Malaysia. Sime Darby’s trading volume was at 834,800 shares.

Sime Darby announced the suspension on its shares on Nov 21, three days before it announced the listing reference prices for its demerged plantation and property businesses, at RM5.59 for SD Plantation and RM1.50 for SD Property, while the reference price for Sime Darby was set at RM1.85.

The prices were based on the allocation range of 60% to 68% for SD Plantation and a range of 16% to 19% for SD Property, as set out in the circular to shareholders of Sime Darby dated Nov 4, and the closing price of Sime Darby shares of RM8.94 on Nov 24.

The listings of SD Plantation and SD Property as separate entities from the holding company Sime Darby was to unlock sustainable value for the group and its investors. — theedgemarkets.com

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