UOA Development Bhd., a Malaysian developer, sold shares at 2.60 ringgit each in the Southeast Asian nation’s biggest initial public offering so far this year, two people familiar with the matter said today.
The unit of Sydney- and Singapore-listed United Overseas Australia Ltd. (UOS) raised 1.05 billion ringgit ($347 million) in the share-sale, said one of the people, who declined to be identified as the information hasn’t been made public. It sold 377 million shares to institutions priced at the lower end of the projected range of 2.55 ringgit to 3 ringgit apiece, they said. Another 70 million shares would be sold to individual investors at 2.52 ringgit each, one of the people said.
Malaysian companies led by Petronas Chemicals Group Bhd. (PCHEM) raised a record 19.7 billion ringgit from initial share sales last year. Upcoming IPOs include an offer by the sugar refining unit of Felda Global Ventures Holdings Sdn., which may raise as much as 900 million ringgit, according to Maybank Investment Bhd.
Kuala Lumpur-based UOA Development, which builds homes and offices that cater to medium- to high-income buyers, plans to use the proceeds to fund projects, Director Alan Charles Winduss said on April 28. They include the Bangsar South township development in the Malaysian capital, which has a potential sales value of more than 8 billion ringgit, he said.
The company aims to complete properties which could generate sales valued at 2.1 billion ringgit over the next three years, according to a draft of the prospectus registered with Malaysia’s Securities Commission.