Malaysia's IHH institutional offer oversubscribed-sources
KUALA LUMPUR, July 5
KUALA LUMPUR, July 5 (Reuters) - The global institutional offer of Malaysia's IHH Healthcare Bhd's $2 billion initial share sale has been oversubscribed nearly 60 times, according to two people with knowledge of the matter.
The global institutional tranche, which makes up 6 percent of the offering, has been mostly subscribed at the higher end of the bookbuilding range between 2.67 and 2.85 ringgit per share, the people said.
At 2.85 ringgit per share, IHH, Asia's largest hospital operator, will have a market value of 22.9 billion Malaysian ringgit ($7.26 billion) when it lists, making it the world's second-biggest listed healthcare provider after HCA Holdings Inc .
A third person said the book was fully covered, but did not confirm the oversubscription.
"Given the demand, there is no doubt where this deal will be priced, but there will be other considerations too," the third source said, adding management might want to keep some money on the table for retail investors.
The institutional price and final retail price is expected to be fixed on July 12.
IHH officials declined to comment.
IHH, the healthcare arm of Malaysia's state investor Khazanah Nasional Bhd, is slated to debut on the Malaysian and Singaporean bourses on July 25, making it the world's third-largest flotation so far this year after Facebook Inc and Felda Global Venture Holdings Bhd.
Bank of America-Merrill Lynch, CIMB and Deutsche Bank are the lead global coordinators, with Credit Suisse, DBS, Goldman Sachs and Maybank acting as joint bookrunners.