MCT to raise RM300m from Bursa listing

KUALA LUMPUR (Jan 16): Property developer MCT Consortium Bhd is expected to raise at least RM300 million from its proposed listing.  

Managing director Datuk Seri Tong Seech Wi said MCT, which was finalising a reverse takeover (RTO) of GW Plastics Holdings Bhd, hoped to list on the Main Market of Bursa Malaysia by end of March this year.

GW Plastics (fundamental score: 1.2; valuation score: 0.3) will emerge as a property development firm and be renamed as MCT Bhd, upon completion of the listing.

“We hope to complete the listing of new shares in the company (MCT Bhd) by March,” Tong told reporters in Subang Jaya today.

He said the listing was subjected to relevant approvals from the authorities. Tong said MCT's prospectus was expected to be released soon.

Yesterday, GW Plastics shareholders voted in favour of the RTO at the company's extraordinary general meeting. The RTO comes under Practice Note 17 (PN17) entity GW Plastics' revamp.

GW Plastics has been a PN17 entity since January 2013, after it sold its core plastic manufacturing businesses under Great Wall Plastics Industries Bhd and GW Packaging Sdn Bhd to Scientex Bhd. The cash deal was valued at RM283.2 million.

Yesterday, GW Plastics chief executive officer Lim Kok Boon said the firm was expected to be uplifted from its PN17 status by the second quarter of this year.

Today, MCT's Tong said he and another co-founder Tan Sri Barry Goh Ming Choon would collectively control some 64% in the company, after the listing.

The remaining 36% stake will be distributed among selected and Bumiputera investors, besides minority shareholders.

MCT has an undeveloped landbank of 192ha (480 acres) within Subang Jaya and Cyberjaya in Selangor.

Tong said the group would develop the tracts over the next few years.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)