KUALA LUMPUR: WCT Holdings Bhd, which reached an almost five-year high yesterday, announced that it is proposing to establish a real estate investment trust (REIT) and list it on the Main Market of Bursa Malaysia.
The stock last traded at 98.5 sen a share, giving it a market capitalisation of almost RM1.4 billion.
The group said the initial portfolio of the REIT will comprise retail properties currently owned by its subsidiaries or joint-venture companies, which have yet to be identified.
It said the exercise will allow the group to unlock the value of its investments in these properties.
"The proceeds to be raised pursuant to the proposed REIT establishment and listing will provide the group with the necessary funds mainly to pare down WCT's borrowings and capitalise on strategic opportunities as and when they arise," WCT Holdings said in a filing with Bursa Malaysia Securities.
Following the completion of the establishment and proposed disposal of the properties' entire interest to the REIT, WCT will propose an initial public offering of units and admission of the REIT to officially list on the Main Market as well as the listing of quotations for the units.
WCT has appointed Maybank Investment Bank Bhd as its principal adviser for the REIT establishment and listing.