UOA gets EPF as cornerstone investor

KUALA LUMPUR: Property developer UOA Development Bhd, which expects to raise about RM1.2bil from its initial public offering (IPO), has secured Employees Provident Fund (EPF) as its cornerstone investor for the offer-for-sale portion.

According to UOA Development prospectus, the cornerstone investor has agreed to acquire from the selling shareholders the shares that represent less than 5% of the company's enlarged issued and paid-up capital.

The shares will be purchased at institutional price, subject to terms and conditions.
Tan Sri Alwi Jantan (left) and Datuk Seri Nazir Razak launching UOA Development’s prospectus.

The cornerstone investor is allowed to acquire additional IPO shares which is not as part of the cornerstone placing agreement. The selling shareholders are UOA Holdings Sdn Bhd and United Overseas Australia Ltd.

UOA Development targets to be listed on Bursa Malaysia Main Market by June 8. The company is offering 407 million shares to Malaysian and foreign institutional investors as well as Malaysian retail investors, including bumiputra investors approved by International Trade and Industry Ministry.

The retail portion of 70 million shares will be priced at RM2.90 each or at a 3% discount to the institutional price. The institutional price will be determined by way of bookbuilding.

UOA Development chairman Tan Sri Alwi Jantan said the listing was an indication of the company's assertiveness to generate more capital and resources to ensure that its growth momentum continued.

“A large amount of the proceeds will be used for our expansion as well as working capital to facilitate our existing operations,” he said at the prospectus launch yesterday.

Alwi said the company currently had property projects with an estimated gross development value of RM10bil, of which about RM2bil was under development.

CIMB group chief executive Datuk Seri Nazir Razak said assuming a retail price of RM2.90, UOA Development's debut would raise proceeds of about RM1.2bil and indicate a market capitalisation of RM3.47bil.

“This will, therefore, be the largest IPO in Malaysia for the year to date and upon listing, the company will rank among the largest property developers on Bursa,” he added.

CIMB Investment Bank is the principal adviser, sole bookrunner, managing underwriter and joint underwriter for the exercise.

The joint underwriters for the retail offering are CIMB Investment Bank, RHB Investment Bank Bhd, OSK Investment Bank Bhd, HwangDBS Investment Bank Bhd and Hong Leong Investment Bank Bhd.