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KUALA LUMPUR: IOI Properties Group Bhd (IOIPG), which is tentatively slated for a listing on Bursa Malaysia on Jan 15, found itself in the limelight over the time frame given to shareholders of parent company IOI Corp Bhd to apply for their entitlement in IOIPG.
According to a media report, minority shareholders had complained about the short time frame for the application for the restricted offer shares (ROS).
However, a source familiar with the issue said the time frame allocated for shareholders to subscribe to the ROS was in line with regulatory requirements — it was merely coincidental that the time period fell during the end of the year.
“The time frame given is in full compliance with Bursa Malaysia’s listing requirements and it just so happened to have occurred over the year-end period.
“There is no issue of shareholders not having enough time to subscribe, as the announcements on the opening and closing period were announced by IOI Corp earlier,” said the source, adding that the group had made known its offer for sale even before the release of IOIPG’s prospectus.
IOI Corp, which is demerging its property arm through IOIPG’s listing, is making available 1.065 billion IOIPG shares for sale on a non-renounceable basis to entitled shareholders on the basis of one restricted offer share for every six existing IOI Corp shares held.
In addition, shareholders of IOI Corp would also receive one IOIPG share (of RM1 apiece) for every three existing ordinary shares of 10 sen each held in IOI Corp.
To get their ROS entitlement, shareholders are required to submit their applications within the period between Dec 26, 2013 and Jan 2, 2014.
In an announcement on Dec 31, the group said it was extending the deadline to subscribe to the ROS to Jan 6, 2014.
According to the source, the deadline was extended from Jan 2 to Jan 6 as a gesture of goodwill by the company to shareholders.
He denied market talk that the timing of the closing date for the ROS application was to allow majority shareholders to obtain a larger stake in IOIPG.
“All shareholders are treated the same and given the same amount of time,” he said.
The deadline extension for the ROS does not change the listing date for IOIPG, which is still slated for Jan 15. “In the event that the closing date and/or time for acceptance, application and payment (including excess application and payment of the excess restricted offer shares) is extended, the date of listing of IOIPG may be extended accordingly.
“Any extension will be announced in widely circulated daily Bahasa Malaysia and English newspapers within Malaysia,” IOI Corp said.
The date for the allotment of the ROS to successful applicants and the distribution of shares to entitled shareholders is Jan 13.
This article first appeared in The Edge Financial Daily, on January 3, 2014.
