Malaysian tycoon Syed Mokhtar said to mull property company IPO

[KUALA LUMPUR] Australian developer Walker and Malaysian tycoon Syed Mokhtar Al-Bukhary are considering an initial public offering of their joint venture to raise as much as RM500 million (S$160 million), according to sources familiar with the matter.

WM Senibong, which develops property including luxury homes in Malaysia’s Johor state, is working with financial advisers on a plan and may seek a valuation of more than RM2 billion in a listing in Kuala Lumpur next year, the sources said, asking not to be identified because the information is private.

Considerations are ongoing and details such as IPO size and timing may change, the sources said. WM Senibong and Walker did not respond to requests for comment.

Johor, which borders Singapore, became Malaysia’s top investment destination last year following the establishment of a special economic zone. A large landbank, space constraints in Singapore, a favourable exchange rate and a planned cross-border rail shuttle has increased the appeal of Johor homes.  

Malaysia’s stock exchange has seen a pick-up in activity, boosted by Sunway Healthcare Holdings’ nearly RM3 billion debut last month, the country’s biggest IPO in nine years.

WM Senibong, established in 2008, says its sales topped RM4 billion last year. Walker is its biggest shareholder with a holding of 49 per cent, while entities controlled by Syed Mokhtar have significant minority stakes. BLOOMBERG