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Friday, May 27, 2016

WCT delays construction IPO but earlier launch for REIT

Friday, 27 May 2016 | MYT 8:55 AM
WCT delays construction IPO but earlier launch for REIT

KUALA LUMPUR: CIMB Equities Research said construction-property company WCT is delaying its construction initial public offer (IPO) while the real estate investment trust (REIT) initiative will be rolled out earlier.

The research house said on Friday these were among the highlights of the post-1Q16 results briefing by WCT management.

“New route to de-gearing via property asset monetisation and private placement in 3Q16. This could cumulatively raise RM500mil to RM800mil (US$125mil to RM200mil). Order book growth driven by highways in medium term. Positive newsflow in 2H16,” it said.

CIMB Research said WCT guided for stronger construction pretax margins in 2H16 via flow-through of infra billings was intact. This was to assure investors of solid construction earnings visibility, backed by its high RM4.4bil (US$1.1bil) order book at end-1Q16.

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