Aspial Corp carries out its property development business in Malaysia and Australia through World Class Global which unveiled three projects for sale – Melbourne’s AVANT residential project (pictured), Australia 108 condominium and Nova City in Cairns. (Image: World Class Global)
In an effort to raise funds for working capital as well as property purchase and construction, Aspial Corporation Limited plans to spin off its property development division by floating it on the Catalist board of the Singapore Exchange (SGX), reported The Business Times.
Aspial Corp, which operates pawnshops and jewellery stores, carries out its property development business in Malaysia and Australia through World Class Global, whose Non-Executive Chairman Koh Wee Seng is also the CEO of the parent firm. Koh’s brother-in-law Ng Sheng Tiong is the Chief Executive of the subsidiary.
Both persons will be selling stocks in the offering, with each owning five percent of the share capital of World Class Global prior to the issuance. However, the proceeds from the listing and the schedule of the initial public offering have not yet been determined.
ZICO Capital, the transaction’s sponsor and issue manager, will also get some stocks in World Class Global as payment. UOB KayHian was appointed as the listing underwriter and placement agent, while OCBC Bank was named as the sub-placement agent.
Notably, Aspial Corp’s property development arm has been suffering from losses since 2014. Last year, it recorded a net loss of S$6.3 million, while net asset value reached S$88.4 million as of 31 December 2016.
According to the listing’s preliminary prospectus, the losses are due to accounting rules that prevents World Class Global from posting revenue until a project is ready. In the past two years, there were no projects completed and handed over to home buyers.
In Australia, it unveiled three projects for sale. Melbourne’s AVANT residential project is 94 percent sold for A$270.6 million and is expected to be completed by end-2018. The Australia 108 condominium in the same city recorded sales of A$949.7 million, with take-up at 97 percent. Handover will be done in two phases between 2018 and 2020.
Meanwhile, World Class Global sold 9.6 percent of the flats at the mixed-use Nova City in Australia as of 31 December 2016 following its launch in October of the same year.
This article was edited by Denise Djong.