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The Initial Public Offering (IPO) of 166.0 million ordinary shares of par value RM0.50 each has come to a successful close. The retail offering of 49.1 million shares closed on 2 March, 2005 while the institutional offering of 116.9 million shares to selected Malaysian and foreign investors closed on 3 March 2005.
After a 2-week roadshow which spanned Europe and Asia where the team met with over 90 investors, Bursa chalked up a record over subscription of 38 times. The orders for the institutional tranche were from more than 300 institutional investors for 4,563.4 million shares.
The institutional offering of 116.9 million shares was launched with a price range of RM2.50 to RM3.20 per share. As a result of the strong order book, the price for the institutional offering has been set at the top of the price range of RM3.20 per share. At this price, a total of RM14.603 billion of orders have been received, of which 24% came from domestic institutions and the balance 76% from foreign institutions. Based on this price, the retail offer price will be RM3.00, being the lower of RM3.00 and 97% of the institutional price. Therefore, no refund will be given to the successful applicants of the retail offer.
Chief Executive Officer of Bursa Malaysia Berhad, Yusli Mohamed Yusoff, said “We are very pleased with the overwhelming response, particularly from foreign investors. As a proxy for the Malaysian equity market, we feel that this is a resounding vote of the confidence from the foreign investment community on our equity market.”
“We have attracted interest from many of the finest institutional investors. The order book also includes orders from high quality international investors who have not had any recent significant exposure to the Malaysian equity market,” Yusli continued.
“This institutional investor response is unprecedented. The institutional offering achieved a record over subscription of 38 times, the highest in the history of international institutional offerings of Malaysian IPOs. This was achieved despite order size being capped to the individual shareholding limit of 5% of Bursa’s share capital,” said Dato’ Nazir Razak, Chief Executive of Commerce International Merchant Bankers Berhad, the Principal Adviser and Joint Bookrunner for the initial public offering. The other Joint Bookrunner for the institutional offering to international investors is UBS Investment Bank.
“The road show team showed utmost professionalism during the road show and worked extremely hard in meeting many investors. We are absolutely delighted with the demand received on Bursa and the positive outlook viewed by the foreign investors towards this IPO and are sure the view is shared on the overall Malaysian equity market.” said Patrick Lee, Managing Director, Head of Singapore/Malaysia Investment Banking, UBS Investment Bank.
