Malaysian property developer MCT Consortium Bhd is expected to raise at least MYR300 million ($84.4 million) when it lists on the local exchange by March-end, following its reverse takeover (RTO) of GW Plastics Bhd.
DEALSTREETASIA had earlier reported, quoting a executive familiar with the developments, that the company was likely to raise around ($450 million) $129 million through its listing.
When MCT Consortium first initiated its backdoor listing a year ago, chairman and co-founder Barry Goh Ming Choon had explained that the company was sourcing for about MYR500 million to MYR600 million ($140 million to $169 million) in funding.
The property developer is finalising its RTO of GW Plastics Holdings, and is looking to list by the end of March this year, according to managing director Tong Seech Wi.
Post the RTO, GW Plastics, a packaging company will emerge as a property development firm under a new name, MCT Bhd, on the Malaysian stock exchange.
Tong said the backdoor listing was still subject to relevant approvals and that the prospectus will be released soon.
MCT has an undeveloped landbank of 480 acres in the Subang Jaya and Cyberjaya areas in Selangor Malaysia.
GW Plastics shareholders voted in favour of the RTO yesterday at the company’s extraordinary general meeting. The company had been designated under Practice Note 17 (PN17) since January 2013, when it sold its core plastics manufacturing businesses, Great Wall Plastics Industries Bhd and GW Packaging Sdn Bhd to Scientex Bhd for a cash deal of MYR283.2 million ($80 million).
The company’s PN17 status is expected to be uplifted by the second quarter of this year, when the RTO was completed.
GW Plastics CEO Lim Kok Boon said it will distribute dividends to its existing shareholders before the completion of the RTO, although it has not decided on the value. After the listing, Tong and co-founder Barry Goh Ming Choon will collectively hold 64 per cent in MCT Bhd.
The remaining stake goes to the minority shareholders, selected investors and bumiputera (indigenous people) investors as required by the listing regulations in Malaysia.