UOA to list development arm

UOA unit UOA Development Bhd is the developer of mega projects such as the estimated RM6 billion Bangsar South in Kampung Kerinchi.

KUALA LUMPUR: The board of United Overseas Australia Ltd (UOA), which is listed primarily on the Australian Stock Exchange (ASX), has submitted documents to Bursa Malaysia for a proposed listing of its development arm on the local bourse’s main market.

The Edge Financial Daily understands that UOA, which has a dual-listing on the Singapore Stock Exchange (SGX), is expecting to hear back from the local regulators soon and hopes to have its development arm listed on Bursa by June 2011.

UOA Development Bhd, the developer of mega projects such as the estimated RM6 billion Bangsar South development in Kampung Kerinchi, is 100%-owned by UOA Holdings Sdn Bhd, which is in turn a wholly- owned subsidiary of UOA.

It is worth noting that the UOA group listed UOA Real Estate Investment Trust (UOA REIT) on Bursa in 2005.

In its recent filings with the ASX, UOA said it had on Jan 31, 2011 lodged a prospectus exposure draft with the Securities Commission of Malaysia for the latter’s “comment, approval for registration and distribution”.

Earlier, the group in November 2010 made an announcement to both the ASX and SGX stating its intention to list its property development division on Bursa and in fact had undertaken a feasibility study to facilitate the listing.

UOA’ shareholders have not met to weigh in on the proposed listing, although this would happen if and when the Malaysian capital market authorities give their approval, said a company official.

According to filings with the ASX and SGX, UOA intended to maintain a majority stake in the listed entity with the initial public offering of at least 25% of the issued and paid-up capital of the development division.

CIMB Investment Bank Bhd is the principal advisor for the proposed listing.

UOA’s market capitalisation on the ASX was A$338.1 million (RM1.04 billion) as at Feb 8, that on the SGX was S$439.5 million (RM1.45 billion respectively.

The share price of UOA on both exchanges are presently trading close to their 52-week highs of A$0.35 on Feb 4, 2011 and S$0.46 on Feb 8, 2011.

For the financial year ended Dec 31, 2009, UOA posted a net profit of A$111.95 million on the back of revenue of A$152.18 million.

According to UOA’s 2009 annual report, its single largest shareholder was Griyajaya Sdn Bhd with 276.36 million shares, representing a 30.05% stake, followed by Dream Legacy Sdn Bhd with a 12.17% stake and Metrowana Development Sdn Bhd with an 8.4% stake.

UOA was incorporated in Western Australia in 1987 and was listed on the ASX in 1988.

UOA’s associate company UOA REIT is listed in the Main Market of Bursa Malaysia, with assets valued at RM1.05 billion comprising six commercial properties in Kuala Lumpur with a total estimated lettable area of 1.5 million sq ft.