KUALA LUMPUR (June 13): Iskandar Waterfront City Bhd (IWCity) has decided not to appeal against the rejection of the relief application by Bursa Securities and said that it is now a Paragraph 8.03A affected listed issuer.

The property developer stressed that it is not a Practice Note 17 (PN17) company.

Paragraph 8.03A refers to a listed corporation whose assets on a consolidated basis consist of 70% or more of cash or short-term investments, or a combination of both. 

The regulator had via its letter dated June 3, rejected IWCity’s relief application.

In a Bursa Malaysia filing on Friday (June 10), IWCity said it will focus on improving its business operations within the 12-month period to submit its regularisation plan.

The group stressed that it has unbilled sales of approximately RM65 million, which will be recognised as revenue progressively in the current financial year onwards. 

“Further, the Group has a total land bank of approximately 1,000 acres, which is within the Central Business District near the Johor Bahru-Singapore Rapid Transit System link station in Johor Bahru and is expected to generate long-term sustainable development for the group’s business activities.

“On May 13, 2022, the company had announced the execution of a heads of agreement in regards to the proposed disposal by the group of two parcels of land for an indicative disposal consideration ranging from RM90 million to RM95 million, subject to execution of the definitive agreement, which will be recognised as revenue from land sales upon completion,” it said. 

In light of the above, IWCity believes the group will be able to rectify its Paragraph 8.03A affected listed issuer status within the said regularisation period.

In the first quarter ended March 31 (1QFY22), the group’s net loss narrowed to RM5.19 million, from a net loss of RM5.78 million a year earlier, while revenue declined from RM4.57 million, compared to RM7.54 million. 

Shares in IWCity closed one sen or 3.08% lower to 32 sen on Friday, giving it a market capitalisation of RM290.16 million. 

Edited by Lee Weng Khuen. 

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