IWCity decides not to appeal to Bursa's rejection of relief application

KUALA LUMPUR: Iskandar Waterfront City Bhd (IWCity) has decided not to appeal to Bursa Malaysia Securities Bhd’s rejection of the company’s relief application but instead will focus on improving its business operations within the 12-month regularisation period.

It said this was upon due consideration of the existing facts and the just improving property market conditions which would have timing gaps in recognising the revenue by IWCity and its subsidiaries.

"Pursuant thereto, the company is an affected listed issuer under Paragraph 8.03A of the Main Market Listing Requirements (MMLR),” it said in a filing with Bursa Malaysia.

IWCity was referring to the announcement made on March 25 in relation to its relief application to Bursa Securities from classifying it as an affected listed issuer pursuant to Paragraph 8.03A(2)(b) of the MMLR and also Bursa Securities’ rejection to the relief on June 3.

"The company has an unbilled sales of about RM65 million, which will be recognised as revenue progressively in the current financial year onwards,” it said.

Furthermore, the company has a total landbank of some 404.68 hectares within the Central Business District near the Johor Bahru-Singapore Rapid Transit System link station in Johor Bahru and expects to generate long-term sustainable development for the business activities.

"The company has announced the execution of a heads of agreement in regards to the proposed disposal of two parcels of land for an indicative disposal consideration ranging from RM90 million to RM95 million, which will be recognised as revenue from land sales upon completion,” it said.

Hence, IWCity believes it would be able to rectify its Paragraph 8.03A affected listed issuer status within the said regularisation period.

The company is required to regularise its condition within 12 months from the date of the announcement, among others, by submitting a regularisation plan to the Securities Commission Malaysia or Bursa Securities. - Bernama