SUNWAY Bhd has proposed to list its construction division, which is currently held under its indirect wholly-owned subsidiary, Sunway Construction Sdn Bhd (SunCon), on the Main Market of Bursa Malaysia Securities Bhd.
A new company, Sunway Construction Group Bhd (SCG), has been incorporated by Sunway Holdings Sdn Bhd, a wholly-owned subsidiary of Sunway, to be a listing vehicle to acquire the entire shareholdings in SunCon for RM258.6 million via issuance of shares, it said in a filing to Bursa Malaysia yesterday.
In conjunction with the proposed listing, Sunway Holdings proposes to dispose of the entire issued and paid-up share capital of SunCon to SCG.
The company said there will be a proposed one-for-10 distribution-in-specie of free SCG shares to existing shareholders of Sunway.
Up to 35.7 per cent of SCG shares will be offered for sale to institutional and retail investors.
Post-listing, Sunway will retain majority control of the holding company, with at least 51 per cent interest.
RHB Investment Bank has been appointed as sole principle adviser for the proposed listing.
SCG and its subsidiaries will be mainly involved in the construction of buildings and civil works and the manufacturing and sale of precast concrete products in Malaysia and Singapore.
As at July 31, SunCon has an outstanding order book of RM3.4 billion.
SunCon has more than 30 years of experience in the construction business, with a track record and expertise in building and civil works construction, geotechnical services, provision of mechanical, electrical and plumbing solutions and manufacturing of precast concrete products.
It has established a reputation, both locally and abroad, with major projects completed locally, including the Kuala Lumpur Convention Centre, Silk Highway, Sunway Pyramid Shopping Mall, Sunway Medical Centre, Legoland Theme Park and Pinewood Iskandar Malaysia Studios.
Internationally, the company has completed the construction of sections of major highways in India, the Al Reem Island Development and Rihan Heights in Abu Dhabi, and the Ministry of Legal Affairs Tower building in Trinidad and Tobago.
Some of the key construction projects currently undertaken by the company include the Mass Rapid Transit Package V4, Kelana Jaya Light Rail Transit extension line, Sunway bus rapid transit line, Afiniti Urban Wellness Centre,
KLCC North East Carpark and
KLCC Package 2.