(From left) non-executive director Hajah Shakinur Ain Karama, executive director Axel Seah, executive director Johnny Lim, chairman Datuk Eric Usip Juin, Quek, executive director Fong Kin Wui, executive director Chan Ka Tsung and executive director Tan Kung Ming during WMG’s listing yesterday.

KUCHING: Sabah-based property developer WMG Holdings Bhd (WMG) is set to expand its land bank and launch more development projects in Sabah upon its successful listing on the Main Market of Bursa Malaysia via a reverse take-over (RTO) of Tekala Corporation Berhad (Tekala).

Currently, WMG has a total undeveloped land bank of approximately 620 acres, of which 442 acres are in Sandakan while the remaining 178 acres are in Kota Kinabalu.

In the next few years, WMG plans to launch more than RM1.3 billion worth of projects on 44.12 acres in Sabah, comprising both residential and commercial properties. The pipeline projects will add on to WMG’s ongoing projects with estimated gross development value (GDV) of RM445.1 million.

“The listing is timely for us to not only allow us to tap into the capital market for future land banking opportunities, but also raise our corporate profile as we plan to undertake approximately RM1.3 billion worth of pipeline projects.

“The long term prospects of the property development market in Sandakan and Kota Kinabalu look promising, spurred by government spending on infrastructure projects in the state, such as the Pan Borneo Highway, which passes through Kota Kinabalu and Sandakan.

“Ongoing initiatives under the Sabah Development Corridor Blueprint and tourism boom also augur well for the economic development of the state, which stand to boost demand for properties.

“We are certainly looking ahead to expand our land bank in order to strengthen our market position in Sandakan and Kota Kinabalu,” group managing director Quek Siew Hau said.

WMG made a commendable debut on the Main Market of Bursa Malaysia Securities Berhad today with an opening price of RM0.50, representing a premium of two sen over the reference price of RM0.48, with 40,000 shares done at first trade.

Founded more than 30 years ago, WMG has a strong track record of completing projects with GDV of RM2.2 billion in Sandakan and Kota Kinabalu.

In 2015, WMG garnered a market share of 7.1 per cent of total residential property development in Kota Kinabalu and 19.3 per cent in the region of Sandakan.

WMG also commanded a market share of 53.7 per cent of total commercial property development in the region of Sandakan, based on its property transaction values recorded.

For the financial year ended December 31, 2016 (FY16), WMG’s property development segment recorded RM75.1 million or 79 per cent of the group’s total revenue of RM95.1 million whereas the sale of building materials contributed the remaining 21 per cent or RM20 million.

The listing of WMG on the Main Market of Bursa Malaysia marks the completion of the successful RTO of Tekala. The corporate exercise saw the exchange of 100 Tekala ordinary shares for 133 new WMG ordinary shares.

Upon listing, the existing public shareholders of Tekala now hold approximately 31.3 per cent of WMG, while the vendor of WMG holds 56.3 per cent.

Hong Leong Investment Bank is the principal adviser of WMG, with Public Investment Bank Bhd being the independent adviser for the exercise.