I-Bhd Receives RM100 Million Investment to Accelerate i-City Development

I-Bhd, a property developer and theme park operator based in Malaysia, has announced that it will issue up to 100 million redeemable preference shares to its major shareholder, Sumurwang Sdn Bhd, for a total of RM100 million. The investment, pledged by I-Bhd's chairman Tan Sri Lim Kim Hong, is aimed at accelerating the development of the company's flagship i-City project in Shah Alam.

The funds from the share issuance will be utilized to settle advances from Sumurwang, fund the ongoing BeCentral Residences project, and provide working capital for I-Bhd's operations. Sumurwang, which is controlled by Lim Kim Hong, currently holds a 57% direct stake and a 6% indirect stake in the company. The preference shares are non-tradable and not convertible into ordinary shares.

Why this matters: The RM100 million investment signifies a strong vote of confidence in i-City's growth potential and strategic initiatives, especially with the acceleration of the Malaysia Digital agenda. The infusion of funds is anticipated to catalyze the development of the remaining RM5 billion gross development value in i-City and strengthen the path for growth and prosperity.

I-Bhd has been rebuilding its property development roadmap that was disrupted by the pandemic and is now positioned for significant growth. The company's unbilled sales have increased from RM39 million in 2021 to RM113 million at the end of 2023. The investment will enable I-Bhd to expedite the completion of its current projects and capitalize on the anticipated upswing in the property market.

In addition to accelerating property development, the investment will also support the growth of I-Bhd's RM1 billion investment property portfolio. The company aims to maximize returns from assets such as the GBI Grade A Mercu Maybank corporate tower, 5-star DoubleTree Hilton i-City, Best Western hotel, Central i-City regional mall, Tier-3 Data Centre, and carpark facilities.

The proposals for the share issuance are expected to be completed in the third quarter of 2024. "The RM100 million infusion will 'catalyse' the development of the remaining RM5 billion gross development value in i-City," stated I-Bhd in a press release. The financial backing from its major shareholder demonstrates confidence in i-City's potential as a digital township and its alignment with Malaysia's digital agenda.

Key Takeaways

• I-Bhd to issue 100M redeemable preference shares to major shareholder for RM100M
• Funds to settle advances, fund BeCentral Residences, and provide working capital
• Investment to accelerate development of RM5B i-City project in Shah Alam
• Unbilled sales increased from RM39M in 2021 to RM113M by end of 2023
• Investment to support growth of RM1B investment property portfolio