IWC stock falls as re-involvement in Bandar Malaysia unlikely

By MARK RAO

Iskandar Waterfront City Bhd’s (IWC) share price tumbled yesterday, as anticipation of renewed Bandar Malaysia talks failed to materialise into strong gains over the course of the day.

The property developer’s stock had jumped 24.19% to close 30 sen higher at RM1.54 on Tuesday, as the market speculated on its holding company Iskandar Waterfront Holdings Sdn Bhd’s (IWH) possible re-entry into the RM200 billion property project.

Earlier, a consortium between IWH and China Railway Engineering Corp (M) Sdn Bhd was positioned to be the master developer of Bandar Malaysia before the deal was terminated a few weeks ago.

IWC started its early morning trade strongly at RM1.68, but its share price struggled to gain any traction throughout the morning and performed between RM1.58 and RM1.68.

By midday, the developer’s share levelled off to RM1.54 as price-taking was undertaken by speculators, before closing eight sen lower at RM1.46 with 110.7 million shares exchanging hands

The 5% fall resulted in a market capitalisation loss of RM70 million to RM1.22 billion.

Ekovest Bhd’s share price also closed lower yesterday at RM1.13, down by four sen with 46.06 million shares exchanging hands.

Ekovest has an indirect stake in the TRX City Sdn Bhd-run project through IWH, the Johor-based flagship project under Tan Sri Lim Kang Hoo, who holds a 32% stake in the construction conglomerate.

It was recently reported that the project — sitting on 196ha of land on the former Sungai Besi airbase — is considering the services of only a “Fortune 500 company” with experience and cumulative revenue of over RM50 billion in the past three years.

China-based conglomerate Dalian Wanda Group Co Ltd is qualified under the category, but had since been under investigation by Chinese authorities for breaching investment rules.

The deadline for developers to bid for the Bandar Malaysia project is scheduled for today.