KUALA LUMPUR (March 10): Sunway Healthcare Holdings Bhd, which is scheduled for its debut on the Main Market of Bursa Malaysia on March 18, saw heavy investor interest, with its public issue of new shares oversubscribed by 5.57 times.
The healthcare unit of Sunway Bhd (KL:SUNWAY) received applications for 1.51 billion shares worth RM8.42 billion from the Malaysian public, according to a press statement on Tuesday.
Notices of allotment will be dispatched to successful applications on March 17.
The Bumiputera public tranche was oversubscribed by 0.76 times, while non-Bumiputera investors saw an oversubscription rate of 10.37 times. Shares reserved for eligible persons were also fully subscribed.
The institutional offering portion of the exercise was also fully subscribed, backed by joint bookrunners, joint global coordinations, as well as cornerstone investors amongst them. A total of 20 cornerstone investors subscribed for 52.6% of the institutional offering. The bookbuilding exercise attracted demand exceeding about RM11.7 billion in value, it said.
Among the 20 cornerstone investors were the Employees Provident Fund (EPF), Lembaga Tabung Haji, JPMorgan Asset Management (Singapore) Ltd and Urusharta Jamaah Sdn Bhd. Cornerstone investors typically agree to buy a large chunk of initial public offering (IPO) shares ahead of the IPO, and help in boosting the company's appeal to other potential investors.
The institutional price was set at RM1.45 per IPO share. The final retail price is also RM1.45 per share, so successful retail applicants will not receive any refund.
Sunway Healthcare will debut with a market capitalisation of RM16.7 billion. The group is looking to raise up to RM2.86 billion for the company, with proceeds going towards expanding its patient bed count and also growing its existing hospitals.