IHH (IPO)

IHH: the Straits Times understands that IHH began marketing about 138m shares to institutional investors on Tuesday, and met with such an overwhelming response that the issue was over-subscribed by >30x by yday. IHH, which hopes to raise ~$2.6b from its dual listing on SGX and Bursa Malaysia, priced its shares at an indicative range of RM2.67 to RM2.85 (S$1.07 to S$1.14). A source said IHH's offering to cornerstone or strategic investors was oversubscribed by 2x, so it's not surprising that the institutional portion of the offering will draw in the crowds as well. An additional 169m shares may be offered if demand is strong. Retail investors in Singapore and Malaysia have until July 11 to apply for shares in IHH Trading starts on July 25. Khazanah, which fended off India's Fortis Group two years ago to win control of Singapore-listed Parkway Holdings, stands to pocket a gain of RM5b from its initial investment of RM6b from IHH's listing. IHH now wholly owns Parkway and its Mount Elizabeth Orchard, Mount Elizabeth Novena, Gleneagles and Parkway hospitals, giving it a 43.9% share of the private health-care market. IHH said, ~90% of the IPO proceeds, or RM4.7b, will be used to pare down debts related to the acquisition of Turkey's Acibadem and the privatisation of Parkway. Says, this capital structure would allows significant headroom to leverage up should IHH decide to look for other opportunities for expansion.