PETALING JAYA (June 29): Sunway Construction Group Bhd (SCG) has set a dividend policy of paying out 35% of its annual core profit once it has been listed to enable its shareholders “to participate in the group’s profit”, according to its prospectus of its initial public offer.

For the financial year ended Dec 31, 2014, SCG achieved an 88.8% jump in profit to RM124.77 million from RM66.1 million with a 6.6% profit margin compared to 3.6% in the previous year.

Its revenue grew 2.2% to RM1.88 billion for FY2014 from RM1.83 billion in FY2013. Earnings per share came in at 9.7 sen versus 5.2 sen the year before.

Upon listing, the company’s controlling shareholders Sunway Bhd would hold a 55.6% stake, or 719 million shares, through Sunway Holdings Sdn Bhd. Sunway Group chairman Tan Sri Jeffrey Cheah will have direct shareholding of 0.6% or 7.7 million shares and indirect shareholding of 62.7% or 810 million shares, while Sungai Way Corporation directly holds 6.8%, or 87 million shares.

SCG’s listing exercise will offer up to 398.7 million shares for sale, of which 327.59 million shares will be for institutional investors and 71.1 million shares for retail investors.

Meanwhile, the construction outfit’s controlling shareholder Sunway B (fundamental: 1.5, valuation: 2.4) will be distributing 175 million SCG shares to its entitled shareholders by way of dividend-in-specie on a basis of one distribution share for every 10 existing Sunway shares held.

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