Sime Darby’s share place­ment over­sub­scribed

The Sun (Malaysia) - - MEDIA & MARKETING -

PETALING JAYA: Sime Darby Bhd’s place­ment of a 5% stake in the group was over­sub­scribed, with more than RM6.2 bil­lion’s worth of de­mand from lo­cal and for­eign in­sti­tu­tional in­vestors for its shares.

Af­ter an ac­cel­er­ated book-build­ing process, the group placed out new shares at RM7.45 or a 3% dis­count to the five-day vol­ume weighted av­er­age price of RM7.6796.

The ex­er­cise in­volved the of­fer of 316.35 mil­lion new shares, rep­re­sent­ing 5% of Sime Darby’s is­sued and paid-up share cap­i­tal on Tues­day.

“We are de­lighted with the strong sup­port from in­vestors for our place­ment, which shows the trust that the mar­ket has in the fu­ture of Sime Darby,” pres­i­dent and group chief ex­ec­u­tive Tan Sri Mohd Bakke Salleh said in a state­ment yes­ter­day.

The place­ment ex­er­cise will raise a to­tal of RM2.36 bil­lion, which will be used to re­pay bor­row­ings, fund cap­i­tal ex­pen­di­ture and work­ing cap­i­tal as well as to pay for the place­ment ex­penses.

“This is a ma­jor mile­stone in Sime Darby’s delever­ag­ing ex­er­cise, which will re­duce the debt to eq­uity ra­tio to about 38%,” said Mohd Bakke.

The multi­na­tional con­glom­er­ate, which has a mar­ket cap­i­tal­i­sa­tion of RM48.15 bil­lion, is in­volved in key growth sec­tors, namely plan­ta­tion, in­dus­trial equip­ment, mo­tor, prop­erty and lo­gis­tics.

Trad­ing in its shares was sus­pended from 9am till 10am yes­ter­day for the an­nounce­ment. The stock closed 2.63% higher at RM7.81 with 6.5 mil­lion shares traded.

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