Sunway hires banks for $200 mln construction IPO

Malaysia 07 Nov 2014
Sunway hires banks for $200 mln construction IPO

Kualar Lumpur:

Sunway Bhd has hired three more banks to arrange a stock market listing for its construction unit that could raise up to US$200mil, two people familiar with the matter said.

HSBC, Maybank and Standard Chartered will join RHB in working on the initial public offering, the people said.

“The IPO is expected some time in May,” one of the people said, declining to be identified as he was not authorised to speak to the media.

Officials for Sunway were not immediately available to comment.

Sunway, controlled by Malaysian tycoon Tan Sri Jeffrey Cheah, in September announced plans to re-list its construction business in the second quarter of 2015.

Proceeds will be used for working capital purposes and distributed to Sunway investors.

This week, Singaporean sovereign wealth fund GIC Pte Ltd sold its stake in Sunway to raise some $145 million in a book building process handled by CIMB and JPMorgan.

Helped by steady property sales and a strong performance from its construction unit, shares of Sunway have climbed 17.3% for the year to date, giving the conglomerate a market value of about US$1.7bil. The benchmark stock index has dropped 1.9% so far this year. – Reuters

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