KUALA LUMPUR: Ekovest Bhd has drawn up plans to list its property and infrastructure units on Bursa Malaysia.
Without revealing any timeline, managing director Datuk Seri Lim Keng Cheng said the group ultimately wanted its infrastructure, property and construction arms to be listed entities.
“This is our internal long-term plan,” he told NST Business.
Lim said the initial public offering (IPO) for the Duta-Ulu Kelang Expressway (Duke), parked under Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), would take place first before the property division headed for a listing.
“We are working towards an IPO for Duke. We are waiting for our advisers to tell us what is the best option,” he said, adding that the options included a reverse takeover or business trust.
“Ultimately, Duke will be floated.”
Ekovest divested 40 per cent stake in Kesturi late last year to the Employees Provident Fund for RM1.13 billion.
The group’s Duke project will encompass 10 highways when completed by 2030.
Currently, Phase 1 is operational while Duke Phase 2 is scheduled to be operational in the middle of this year.
Duke Phase 3, known as Setiawangsa-Pantai Expressway, is under construction at a cost of RM3.9 billion and comes with a concession period of 53 years.
Recently, Ecovest announced a contract from the government to further extend the Duke highway plans, known as Duke 2A.
It will soon undertake the construction of 75.2km of roads that would link various expressways at a cost of RM6.32 billion.
The infrastructure division comprising toll concessions, operations of the highway assets and maintenance made up 30 per cent of the group’s income, said Lim.
For the property unit, the company’s IPO plans could lean towards a real estate investment trust once the group’s EkoCheras and EkoTitiwangsa malls affirm its footing.
EkoCheras, a 4.8ha project which started in November 2013, has a gross development value (GDV) of RM2.11 billion is strategically connected to the Sungai Buloh-Kajang Mass Rapid Transit Line.
The 1.1ha EkoTitiwangsa has a GDV of RM610 million and is strategically linked to the company’s highway projects.
At present, the property sector contributes 30 per cent to group earnings.
The construction side, which is Ekovest’s core business, accounts for 40 per cent of the group’s business. It includes the Kuala Lumpur River City project.
At present, Ekovest has a construction order book of RM13 billion, which should last for five years, and tender book of RM10 billion proposals.