KUALA LUMPUR Oct 5 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
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
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)