Sons and CEOs: IOI Corp Bhd executive chairman Tan Sri Lee Shin Cheng with his sons Yeow Seng (left) and Yeow Chor (right).
KUALA LUMPUR: IOI Properties Group Bhd, which will be Bursa Malaysia’s first listing of 2014, attracted strong interest in pre-market trade on Wednesday.
At 8.30am, the initial bid was RM2.86, which was 35 sen above its reference price of RM2.51.
RHB Research has a Buy with a fair value of RM3.50. It said IOI Properties massive township developments – a segment less vulnerable to sector cooling measures – would provide the company with sustainable sales.
“IOI’s backing has benefited IOI Properties, with an easier source of landbank and high margins for property developments. Future value will be unlocked via a pool of investment assets worth more than RM2bil,” it said.
RHB Research pointed out that given IOI Properties RM8.1bil market capitalisation at the relisting, the company was qualified to be on investors’ radar screens.