PETALING JAYA: The earnings potential from IOI Properties Group Bhd’s (IOI Prop) ongoing project at IOI Resort City will be more than sufficient to offset the dilutive impact from its acquisition of almost 400 acres from chairman Tan Sri Lee Shin Cheng.
The issuance of new IOI Prop shares for the acquisition, comprising about 644.78 million shares, will see the company’s share base being enlarged by 17% from 3.7 billion shares to 4.4 billion shares. This translated into a dilution of 14% of earnings per share (EPS) for the financial year ending June 30, 2016 and 2017, said BIMB Securities Research.