From left are non-executive director Hajah Shakinur Ain Karama, executive directors Axel Seah Sen Onn and Johnny Lim Ted Hing, chairman Datuk Eric Usip Juin, managing director Quek Siew Hau. The other three executive directors were Fong Kin Wui Chan Ka Tsung and Tan Kung Ming.
KUALA LUMPUR: Sabah-based property developer WMG Holdings Bhd
, which was listed on the Main Market of Bursa Malaysia on Monday, plans to launch more than RM1.3bil worth of projects in the state.
The company said it has a total undeveloped land bank of 620 acres, of which 442 acres are in Sandakan while the remaining 178 acres are in Kota Kinabalu.
The pipeline projects will add on to WMG’s ongoing projects with estimated gross development value (GDV) of RM445.1 mil.
WMG group managing director Quek Siew Hau said the listing was timely for the group as it not only allowed it to tap into the capital market for future land banking opportunities, “but also raise our corporate profile as we plan to undertake approximately RM1.3bil worth of pipeline projects”.
WMG is set to expand its land bank and launch more development projects in Sabah upon its successful listing on the Main Market of Bursa Malaysia via a reverse take-over (RTO) of Tekala Corporation Bhd.
“The long term prospects of the property development market in Sandakan and Kota Kinabalu look promising, spurred by government spending on infrastructure projects in the state, such as the Pan Borneo Highway, which passes through Kota Kinabalu and Sandakan,” Quek said.
He said projects under the Sabah Development Corridor Blueprint and tourism industry would also underpin the state's economic growth and boost demand for properties.
WMG opened at 50 sen, or two sen above it reference price of 48 sen with 40,000 shares done.
Founded more than 30 years ago, WMG is a Sabah-based property developer with a strong track record of completing projects with GDV of RM2.2bil in Sandakan and Kota Kinabalu.
In 2015, WMG had a market share of 7.1% of total residential property development in Kota Kinabalu and 19.3% in the region of Sandakan. WMG also had a market share of 53.7% of total commercial property development in the region of Sandakan.
In FY ended Dec 31, 2016, WMG’s property development segment recorded RM75.1mil or 79.0% of the group’s total revenue of RM95.1mil while the sale of building materials accounted for the remaining 21.0% or RM20mil.
WMG took over the listing status of Tekala under a reverse takeover. The corporate exercise saw the exchange of 100 Tekala ordinary shares for 133 new WMG ordinary shares.
Upon listing, Tekala's existing public shareholders now hold 31.3% of WMG, while the vendor of WMG holds 56.3%.
Hong Leong Investment Bank was the principal adviser of WMG, with Public Investment Bank Bhd being the independent adviser for the exercise.
Among those present at the listing exercise were non-executive director Hajah Shakinur Ain Karama, executive directors Axel Seah Sen Onn and Johnny Lim Ted Hing, chairman Datuk Eric Usip Juin, managing director Quek Siew Hau. The other three executive directors were Fong Kin Wui, Chan Ka Tsung and Tan Kung Ming.
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