Sunway Construction plans $200m May Float

Sunway Bhd’s construction arm, en route to a targeted listing in May 2015, could be submitting its prospectus next week to the Securities Commission (SC).

A source in know of the listing exercise said, the group could be ready to put in its prospectus submission next week, Upon receipt of the registrable prospectus, the SC will review the initial public offering (IPO) proposal, check adequacy of disclosures and compliance with its guidelines within 60 days of the recipt, before it registers the IPO prospectus.

Sunway Group has roped in four banks to work on the listing of its construction unit that could raise up to $200 million.

According to a Reuters report, HSBC, Maybank and Standard Chartered are joining RHB Bank to work on the IPO, which is expected in May next year.

The conglomerate has also adjusted the number of shares to be offered for sale under the proposed listing exercise, following changes in paid-up share capital, excluding treasury shares.

In a first scenario, Sunway Holdings would distribute 155.188 million shares, or about 12% of the paid-up of Sunway Construction, to Sunway via a dividend-in-specie, on the basis of one distribution shares for every 10 Sunway shares held at the entitlement date.

Scenario two was to distribute 207.39 million shares or 16% of the paid-up on the basis of one share for every 10 Sunway shares, assuming all the employee share option scheme (ESOS) and warrants are exercised after September 30.

In addition to the proposed distribution, Sunway Holdings would offer for sale, 415.94 million shares of Sunway Construction – or 32.2% of its paid-up, according to local media.

Of the 32.2%, it would offer 344.83 million shares or 26.7% of the paid-up to institutions; up to 135.75 million shares or 10.5% to Bumiputera investors, and 209.07 million shares or 16.2% to Malaysian institutional investors and foreign institutional and selected investors. There would also be a retail offering of 71.109 million shares at the retail price, or 5.5% of the issued and paid-up share capital.

In September, Sunway announced its intention to re-list the wholly-owned construction business, to “unlock the value of Sunway Construction and distribute part of the benefits to the shareholders of Sunway”. The construction division will be injected into a newly formed holding company, Sunway Construction Group.

Sunway Construction has over 30 years experience in the construction business. Major projects completed locally include the Kuala Lumpur Convention Center, SILK Highway, Sunway Pyramid Shopping Mall, Sunway Medical Center, Legoland Theme Park and Pinewood Iskandar Malaysia Studios.

The unit has also undertaken projects in India, Trinidad and Tobago, and the Middle East. It successfully completed the construction of sections of major highways in India, the Al Reem Island Development, Rihan Heights in Abu Dhabi, and the Ministry of Legal Affairs Tower building in Trinidad and Tobago.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.