Equity Analysis /
Malaysia

MY : IGB Bhd - RCCPS full redemption removes overhang

    Sharizan Rosely
    Sharizan Rosely

    Construction and Infrastructure

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    CGS-CIMB
    1 April 2022
    Published byCGS-CIMB

    IGBB’s move to fully redeem its RCCPS may remove share price overhang as it eliminates the dilutive effect from RCCPS conversion. Reopening of international borders from 1 Apr is positive for retail assets and should catalyse a turnaround of its hotel operations’ losses. Retain Add rating and revise TP upwards to RM2.61 (post RCCPS redemption). FY22-24F dividend yields are decent at 4.4%.