Sunway Construction Group Berhad Debuts on Bursa Securities

Sunway Construction Group Berhad (“Sunway Construction” or “the Company”), Malaysia’s largest listed pure-play construction company by revenue, in connection with its initial public offering (“IPO”) of 398.7 million offer shares (“Offer Shares”), officially commenced trading under SUNCON (5263) on the Main Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) at the opening of trading at 9.00am earlier this morning. Upon its debut, the implied market capitalisation of Sunway Construction, based on the pricing of RM1.20 per share and a share capital of 1.29 billion shares was RM1.55 billion.

At the listing ceremony, Kwan Foh Kwai, Senior Managing Director of Sunway Construction, said, “The listing of Sunway Construction will further enhance Sunway’s brand recognition and visibility among existing and potential customers, and will hopefully propel us in winning more contracts locally and abroad.”

“We will also continue to work hard to increase our market share of the local construction industry by harnessing our 3 main strengths; our integrated construction capabilities, proven track record both domestically and overseas and the strong backing of our parent company, Sunway Berhad,” he added.

The success of Sunway Construction’s listing allows Sunway Berhad’s shareholders to partially monetise the value of its construction arm from the proceeds received from the offer for sale and through a special dividend after the listing of Sunway Construction. The distribution of the Company’s shares to the shareholders of Sunway Berhad which was completed on 5 June 2015, along with Sunway Berhad retaining at least a 51.0% stake in Sunway Construction allows its investors to continue to benefit from prospects of the strong earnings of its construction business.

In addition, with Sunway Berhad retaining a significant stake in Sunway Construction, it will maintain a keen interest in the business direction and financial performance of the Company and ensure that the long-standing relationship between Sunway Berhad and Sunway Construction will continue to flourish.

The institutional offering consists of 327.6 million shares, with an over-allotment option of 59.8 million shares. 10 cornerstone investors collectively took up 135.0 million shares in Sunway Construction. The book-building tranche, which consists of 116.6 million shares offered to institutional and selected investors was oversubscribed by 4.6 times.

The launch of the prospectus was officiated by Tan Sri Dr. Jeffrey Cheah, AO, Founder and Chairman of Sunway Group; and witnessed by Board Members of Sunway Construction Group Berhad, in the presence of other invited guests at Sunway Resort Hotel & Spa.

The retail offering of 51.7 million Offer Shares made available for public subscription garnered healthy demand and was oversubscribed by 2.66 times.

RHB Investment Bank (“RHB”) is the sole principal adviser while RHB together with Maybank Investment Bank (“Maybank”) are the joint global coordinators and joint underwriters for the IPO. Joint bookrunners for the institutional offering are RHB, Maybank and The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch.