“IWCity gets six-month extension from Bursa to submit regularisation plan. Debt-to-equity deal with Rampai Fokus aims to revive the property firm’s financial position.“
Kuala Lumpur, 04th Apr 2025, 12.58pm – Loss-making property developer Iskandar Waterfront City Bhd (KL:IWCITY) has secured a six-month extension from Bursa Malaysia Securities to submit its long-awaited regularisation plan, with the new deadline set for September 23, 2025.
In a bourse filing on Thursday, the company said the extension was granted following its request for more time to finalise the plan, initially due on March 24.
However, Bursa Securities cautioned that the extension does not guarantee immunity from a potential trading suspension or delisting if key conditions are not fulfilled. These include failure to submit the plan by the new deadline, failure to secure regulatory approvals, or failure to execute the plan within the permitted timeline.
“If any of these events occur, IWCity’s shares may be suspended on the sixth market day after Bursa issues a suspension notice and could be delisted thereafter,” the statement, issued by Maybank Investment Bank on behalf of IWCity, noted.
Capital Restructuring and Debt Conversion Underway
On March 20, IWCity outlined a sweeping corporate restructuring under its proposed regularisation plan, which includes:
- Issuing up to 725.4 million new shares at RM0.37 each
- Debt-to-equity conversion with major shareholder subsidiary Rampai Fokus Sdn Bhd, converting RM268.4 million in debts into shares
- Conducting a private placement to raise up to RM34.1 million
- Share capital reduction of RM120 million to offset RM47.34 million in accumulated losses
Upon completion, Rampai Fokus — a unit of Iskandar Waterfront Holdings Sdn Bhd, controlled by tycoon Tan Sri Lim Kang Hoo — is expected to hold a 41.72% stake, increasing to 61.34% with related parties. IWCity will seek an exemption from a mandatory general offer.
The Johor state government remains a key shareholder with a 36.87% stake.
Outlook and Market Performance
The funds raised from the private placement will be used to pay contractors, cover professional fees, and support working capital needs. Meanwhile, the capital reduction will leave IWCity with RM69.66 million in retained earnings, strengthening its financial base for future recovery.
IWCity shares closed unchanged at 32.5 sen on Thursday, valuing the company at RM299.37 million. The stock has fallen over 44% year-to-date, reflecting investor caution amid ongoing restructuring efforts.
