Medini Iskandar Malaysia Sdn Bhd, an urban township property developer, plans to list on the local stock exchange in the first half of next year in a deal that could raise up to US$800 million (about RM2.5 billion), two sources familiar with the matter said.
The initial public offering would see the company joining a handful of listed "master developers" in Asia, such as the Philippines' Ayala Corp and Japan's Mitsubishi Estate Co Ltd. Those companies typically develop a region and have a number of property companies in their stable.
"Banks are pitching for the deal," said one of the sources, adding that the plan was still in a preliminary stage. The sources declined to be named because the matter was private.
A representative at Medini Iskandar was not immediately available to comment.
Medini Iskandar, which counts state owned Iskandar Investment Bhd, Dubai's United World Infrastructure and Japan's Mitsui & Co Ltd as shareholders, is the developer for 903 hectares of land earmarked as Malaysia's largest single urban development to date in Iskandar, in Johor.
The site, which will be developed into an urban township consisting of luxury condominiums, hotels, hospitals and education centres, has an expected gross development value of more than RM68 billion over the 20-year development plan, according to Medini's official website.
Malaysia's state investment arm Khazanah Nasional Bhd holds a 60% equity stake in Iskandar Investment, while the Employees Provident Fund and Kumpulan Prasarana Rakyat Johor Bhd each own 20%. - Reuters, July 29, 2013