KUALA LUMPUR: Sunway Construction Group Bhd (SunCon) has recorded an oversubscription rate of 4.6 times for its institutional offering of shares at RM1.20 per offer for sale.

The offering involved roughly 327.6 million shares with 41.44% allocated to bumiputera investors approved by the Ministry of International Trade and Industry and 58.56% placed out to Malaysian and foreign institutional and selected investors.

In a filing with Bursa Malaysia yesterday, SunCon said 189.23 million shares open to Malaysians were also oversubscribed by 2.66 times.

A total of 71.7 million shares under the retail offering had earlier been oversubscribed and the balloting of successful applications was conducted yesterday afternoon.

SunCon is slated for listing on the Main Market of Bursa Malaysia on July 28, which will make it the largest pure-play construction group in the market.

The company targets to raise approximately RM478.4 million through its initial public offering, making it the second largest listing this year after Malakoff Corp Bhd at RM2.74 billion.

It was reported yesterday that SunCon had raised RM550 million after the final pricing came in at the top of its indicative range.

SunCon’s offering is anchored by 10 cornerstone investors who have agreed to purchase 135 million or approximately 10.4% of the issued and paid-up share capital of SunCon.

This article first appeared in The Edge Financial Daily, on July 10, 2015.