Ivory Prop IPO debuts strongly

Ivory Properties Group Bhd made an impressive debut on the Main Market of Bursa Malaysia Securities yesterday, registering a 21-sen premium to its RM1 offer price on the opening bell. The stock traded between RM1.15 and RM1.35, and ended the day at RM1.30, up 30%.

A total of 51.3 million shares changed hands, making it the most active stock of the day. 

The listing came a day after Tuesday’s stalled IPO for optical retail operator, Focus Point Holdings Bhd.

Focus Point had deferred its listing just an hour before the market opening. The stock exchange said the listing was deferred by the company “pending clarification of a complaint made to the regulators”.

Focus Point later issued a statement refuting certain allegations, but no further news of whether the stock exchange has accepted its explanation or when it plans to reschedule its listing has emerged.

Meanwhile, Penang-based Ivory Properties is an established property developer in the northern state. It raised about RM45 million in gross proceeds from its public issue of 44.9 million new shares of 50 sen each. It has 186 million shares in issue and a market capitalisation of RM241.8 million at yesterday’s closing price.

The company is the first IPO for a property developer and the 17th new listing this year. It is one of only 10 companies whose shares have posted first-day gains and is the second-best first-day performing IPO this year, after EA Holdings Bhd.

AmInvestment Bank Bhd was the adviser, managing underwriter, underwriter and sole placement agent for the exercise.

Of the gross proceeds, about RM10 million is expected to be used to repay bank borrowings, RM31.5 million will be for working capital and RM3.4 million for defraying listing expenses.

Penang property exposure
Established in 1999, Ivory Properties offers exposure to Penang’s buoyant property market.

Since its establishment, the company has undertaken projects with a gross development value (GDV) of RM675.6 million, with RM834.1 million of ongoing projects. It estimates the GDV of its future projects at RM1.9 billion.

The group has completed projects such as The View Twin Towers condominium in Batu Uban, Tanjung Park condominium and townhouse, Penang Times Square Phase 1, Birch The Plaza condominium and shopping complex in George Town, among others.

This article appeared in The Edge Financial Daily, July 29, 2010.