Bursa Malaysia IPO to raise $140m
LONDON: Bursa Malaysia Bhd., which runs the nation's stock exchange, may raise almost US$140 million in a share sale after fund managers ordered more than 40 times the stock on offer, a person familiar with the transaction said.
Bursa, which is offering fund managers and insurance companies 116.9 million shares, priced the stock at 3.20 ringgit (84 U.S. cents), said the person, who declined to be identified. The Kuala Lumpur-based company was targeting between 2.50 ringgit and 3.20 ringgit a share. Individual investors will get an additional 49.1 million shares at 3 ringgit apiece.
The funds will help Bursa install new trading systems and set up links with exchanges in Singapore, Thailand and Indonesia aimed at boosting regional share trading. The Malaysian stock market is valued at about $183 billion, ranking ninth in the Asia Pacific region.
UBS AG, Europe's biggest bank by assets, and CIMB Bhd., Malaysia's biggest investment bank, are managing the share sale. Bankers at the two firms declined to comment. -- Bloomberg