KUALA LUMPUR (Jan 16): YTL Cement Bhd, the largest shareholder of Malayan Cement Bhd (KL:MCEMENT), is raising up to RM755 million through a secondary placement of up to 100 million shares or 7.2% stake in the group. 

The shares are priced at RM7.55 apiece, representing a 3.58% discount to the stock’s last closing price of RM7.83 on Thursday (Jan 15). The offer price also implies a 2.94% discount to the one-day volume-weighted average price (VWAP) and a 3.61% discount to the five-day VWAP.

According to a term sheet sighted by The Edge, the accelerated book building offering comprises a base tranche of 65 million shares, or about 4.7% of Malayan Cement’s existing share capital, with an upsized option of up to 35 million additional shares. If fully exercised, the placement would represent approximately 7.2% of the company.

The bookbuild closed at 7pm on Thursday, with payment and crediting of shares scheduled for Jan 20. YTL Cement's spokesperson told The Edge that the sale is to enlarge the public float at Malayan Cement. According to Bloomberg data, the free float is currently at around 29%.

YTL Cement holds a 65.4% stake in Malayan Cement, followed by Prudential plc with 8.43%, according to Bloomberg data.

Malayan Cement shares have climbed more than 60% over the past year to as high as RM8.10, their highest level since January 2017. At the time of writing on Friday, the stock had slipped 13 sen or 1.66% to RM7.70, giving the group a market capitalisation of RM10.64 billion.