Sime Darby Placement, Southeast Asia’s Biggest, is Oversubscribed
Sime Darby Placement, Southeast Asia’s Biggest, is Oversubscribed
05 October 2016
Kuala Lumpur, 5 October 2016 – Sime Darby Berhad’s proposed placement, the biggest primary placement in Southeast Asia in almost 3 years, has garnered overwhelming demand of over RM6.2 billion from institutional investors for shares of the multinational conglomerate.
Following an accelerated bookbuilding process, the Group placed out new shares at RM7.45 or a 3.0 per cent discount to the 5-day volume weighted average price of RM7.6796. The exercise involved the offer of 316.35 million new shares of Sime Darby.
“We are delighted with the strong support from investors for our placement, which shows the trust that the market has in the future of Sime Darby,” said President and Group Chief Executive Tan Sri Dato’ Seri Mohd Bakke Salleh.
Today Sime Darby is the world’s biggest producer of certified sustainable palm oil and is a key player in the industrial equipment and motors businesses in the Asia Pacific region. It is also one of the largest property developers in Malaysia and a leading port operator in China’s Shandong province.
The placement exercise will raise a total of RM2.36 billion for Sime Darby.
“This is a major milestone in Sime Darby’s deleveraging exercise, which will reduce the debt to equity ratio to about 38 per cent,” said Mohd Bakke.
Sime Darby will use the proceeds to repay borrowings, fund capital expenditure and working capital as well as to pay for the placement expenses.
About Sime Darby
Sime Darby is a Malaysia-based diversified multinational involved in key growth sectors, namely, plantation, industrial equipment, motors, property and logistics. Founded in 1910, its business divisions seek to create positive benefits in the economy, environment and society where it has a presence.
With a workforce of 120,000 employees in 26 countries and 4 territories, Sime Darby is committed to building a sustainable future for all its stakeholders. It is one of the largest companies on Bursa Malaysia with a market capitalisation of RM48.15 billion (USD 11.63 billion) as at 4 October 2016.