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Wednesday, February 27, 2008

IOI Properties to raise RM932m

PROPERTY developer IOI Properties Bhd plans to raise up to RM932 million from a rights issue to part-fund its projects in Singapore.

It will also use part of the money to refinance existing debt, it said in a statement to Bursa Malaysia yesterday.

IOI Properties has total debt of RM225 million.

In January, the company, a unit of IOI Corp Bhd, won a bid with its partner to buy land on the resort island of Sentosa, Singapore, for S$1.097 billion (RM2.5 billion).

This followed its first successful bid in March last year. Then, it won a tender to buy land on the island for RM1.1 billion.

"IOI Corp, being the controlling shareholder of IOI Properties, will give its irrevocable and unconditional written undertakings to subscribe in full for its entitlement," IOI Properties said.

IOI Corp holds 71.15 per cent of IOI Properties as at February 15, 2008.

Before the rights issue, IOI Properties will split its shares into two, to boost trading in the stock as it becomes more affordable.

As at February 15 2008, IOI Properties has a paid-up capital of RM333.52 million comprising the same number of shares. After the split, the number of shares will double to 667 million.

Then, it will offer investors one new rights share for every four existing shares held after the split. The rights are priced at RM5.50 apiece.

Shares of IOI Properties closed at RM12.70 yesterday down 40 sen from Monday's close.

By New Straits Times

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