Sunway Construction sees oversubscription of 4.6 times for institutional offering

KUALA LUMPUR (July 9): Sunway Construction Group Bhd (SCG) has recorded an oversubscription rate of 4.6 times for its institutional offering of shares at RM1.20 per offer for sale (OFS) share.

The offering involved roughly 327.6 million shares with 41.44% allocated to bumiputera investors approved by the Ministry of International Trade and Industry (MITI) and 58.56% placed out to Malaysian and foreign institutional and selected investors.

In a filing with Bursa Malaysia today, SCG added that its 189.23 million shares open to the Malaysian public were also oversubscribed by 2.66 times.

71.7 million shares under the retail offering had earlier been oversubscribed and balloting of successful applications was conducted yesterday afternoon.

SCG is slated for listing on the main market of Bursa Malaysia on July 28, 2015, which will make it the largest pure-play construction group on the market.

The company targets to raise approximately RM478.4 million through its IPO, making it the second largest listing this year after Malakoff Corporation Bhd at RM2.74 billion.

Reuters reported yesterday that SCG had raised RM550 million after final pricing came in at the top of its indicative range.

SCG’s offering is anchored by 10 cornerstone investors who have agreed to purchase 135 million or approximately 10.4% of the issued and paid up share capital of SCG.