Source: The Star, 15 Jan 2014

IOI Properties surges to high of RM3.50

KUALA LUMPUR: IOI Properties Group Bhd, which was Bursa Malaysia's first listing of 2014, made a strong debut on Wednesday when it opened at RM3.21, which was a hefty 70 sen above its reference price of RM2.51.

At 9.01am, it was trading at RM3.44. There were 1.95 million shares traded at prices ranging from RM3.21 to RM3.50.

The FBM KLCI fell 7.57 points to 1,827.40. There were 70.01 million shares done valued at RM52.11mil. There were 130 gainers, 63 losers and 156 counters unchanged.

RHB Research has a Buy with a fair value of RM3.50. It said IOI Properties massive township developments - a segment less vulnerable to sector cooling measures - would provide the company with sustainable sales.

"IOI's backing has benefited IOI Properties, with an easier source of landbank and high margins for property developments. Future value will be unlocked via a pool of investment assets worth more than RM2bil," it said.

RHB Research pointed out that given IOI Properties RM8.1bil market capitalisation at listing, the company was qualified to be on investors' radar screens.



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