IHH (IPO)

IHH: Newswire say the IPO has raised ~US$2.0b by pricing its deal at RM2.80 /sh (S$1.157), near the indicative price of RM 2.85 / sh ($1.18), based on the prospectus exchange rate of S$1 = RM 2.42. The hospital operator's IPO, set to be the world's third largest so far this year after Facebook's US$16b new share sale and Msian state-owned planter Felda’s US$3.3b deal, attracted strong investor interest with its institutional portion oversubscribed by more than 60x. The company, partly-owned by the investment holding arm of the Malaysian govt Khazanah Nasional, also attracted 22 cornerstone investors who have committed to buying 62% of the total shares on offer. Investors said the presence of cornerstone investors--who pledge in the early stages of order-taking and commit to holding the shares for at least six months after listing, have added to the attraction of the IPO. The shares will begin trading on both Malaysia's and Singapore's stock exchanges on July 25. The counter looks set to be fast-tracked as a component of Msia's benchmark composite index post-listing, with its early inclusion expected to spur even greater demand for shares of the company. Its inclusion is also likely to further boost the FTSE KLCI, which has been chalking up new highs in defiance of the global gloom. Market players expect IHH's addition on Aug 1 to be a formality. FTSE appears to believe likewise. Says, should IHH's full mkt cap amount to 2% or more of the full capitalisation of the Emas Index on the close of its first trading day (July 25), it will be fast- tracked as a constituent of the KLCI and the remaining FTSE Bursa Malaysia Indices that it qualifies for after the close of business on the fifth day of trading, the global index provider said. FTSE will issue a notice to confirm IHH Healthcare's fast-entrant status at close of July 25. Although IHH's US$2 b public share is smaller than a recent one by Felda (which raised US$1 b more), its market cap is larger: just under RM23 b based on its RM2.85 offer price and 8.057 b share capital. FTSE explained that Felda had not been fast- tracked as the planter did not meet the 2% criteria; its closing market cap on the first day of trade was RM19.335 b, when it needed a value of RM22.32 b given the full market cap of the Emas Index of RM1,116 b on the day.