KUALA LUMPUR (March 10): Sunway Bhd’s (KL:SUNWAY) shares hit a seven-month low on Tuesday as some shareholders offloaded their shares on the ex-date for the distribution of Sunway Healthcare Holdings Bhd (SHH) as dividend in specie.
The stock opened higher at RM5.33 before slipping to an intraday low of RM5.05 a share. It regained some lost ground but still closed 18 sen or 3.41% lower at a seven-month low of RM5.10. Some 13.33 million shares changed hands at its last traded price, bringing its market valuation to RM34.7 billion.
To recap, Sunway is distributing SHH shares on the basis of one SHH share for every 10 Sunway shares held. The healthcare group is expected to be listed next Wednesday, March 18.
According to Sunway's bourse filing, the “distribution shares” will be credited into shareholders’ central depository system (CDS) accounts at the same time that the IPO shares are allotted to successful applicants under SHH’s IPO, ensuring the distributed shares are immediately tradable upon listing.
SHH's initial public offering (IPO) price is set at RM1.45 per share, aiming to raise RM2.86 billion (US$722.22 million) in what could be the country's largest listing in nearly a decade.
The IPO includes 1.97 billion shares priced at RM1.45 apiece for institutional and retail investors, representing a 17.1% stake in the company, according to the prospectus.
The pricing values Sunway Healthcare at RM16.7 billion, with the company's shares scheduled to commence trading on March 18.
Meanwhile, Sunway launched its takeover bid for IJM Corp Bhd (KL:IJM). The conglomerate seems to have dragged into an on-going investigation as the Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki said an investigation paper has been opened into Sunway’s takeover offer following reports received.
In January, Sunway launched a cash-and-share takeover offer valuing IJM at RM3.15 per share, or about RM11 billion, conditional upon securing at least 50% plus one share.
Among IJM’s major shareholders are the Employees Provident Fund with more than a 20% stake, followed by Permodalan Nasional Bhd (13.5%), Retirement Fund Inc (9.64%), Urusharta Jamaah Sdn Bhd (2.84%) and Lembaga Tabung Haji (1.47%), based on the latest public data. EPF also holds a 9.45% stake in Sunway.
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