October 5, 2016 / 4:11 AM / 10 months ago

Malaysia's Sime Darby says $570 mln share placement is oversubscribed

2 Min Read

KUALA LUMPUR, Oct 5 (Reuters) - Malaysian palm oil firm Sime Darby Bhd said on Wednesday its share placement to raise 2.36 billion ringgit ($570.81 million) was oversubscribed due to strong demand from institutional investors.

The sale is the second largest equity markets deal in southeast Asia this year after Frasers Logistics' $665 million initial public offering in Singapore.

In a statement on Wednesday, Sime Darby said the placement of 316.35 million shares generated demand worth 6.2 billion ringgit.

It said the new shares were placed out at 7.45 ringgit each, a 3 percent discount to the five-day volume weighted average share price of 7.6796 ringgit.

Sime Darby shares rose 2.2 percent to 7.78 ringgit on Wednesday.

The proceeds raised will go towards repayment of debt, funding capital expenditure and working capital, and to pay for the placement expenses, the company said.

On Tuesday, IFR reported that the world's largest palm oil planter by land size launched a placement representing 5 percent of the company's capital, at a price between 7.40 ringgit and 7.45 ringgit per share.

Sime Darby is also involved in property development, the motors business and port operations. ($1 = 4.1345 ringgit) (Reporting by Liz Lee; Editing by Muralikumar Anantharaman)

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