Big Caring IPO oversubscribed 4.31 times ahead of Bursa Malaysia listing

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Big Caring IPO oversubscribed

Highlights

The Malaysian public tranche of the Big Caring IPO was oversubscribed 4.31 times, with the public tranche reaching 7.68 times and the Bumiputera tranche 0.94 times.
The IPO price was confirmed at RM1.08 per share, with fundraising expected to reach RM2.03 billion, including RM637.8 million in proceeds from new share issuance for the company.
The group is expected to begin trading on 19 Nov at a market capitalisation of RM7.97 billion, making Big Caring Malaysia’s second-largest IPO this year after Sunway Healthcare.

This article was translated from the original. Read the original version by our correspondent here.

Investor demand and offer price

As reported by The Edge Malaysia, citing a statement from Malaysian Issuing House Sdn Bhd, the Malaysian public tranche of 147.64 million shares received 29,474 applications for 783.75 million shares, representing an oversubscription rate of 4.31 times.

The Bumiputera tranche, comprising 73.82 million shares, received 7,266 applications for 142.85 million shares, representing an oversubscription rate of 0.94 times. The other Malaysian public tranche, comprising the same number of shares, received 22,208 applications for 640.9 million shares, representing an oversubscription rate of 7.68 times.

Meanwhile, the IPO’s final retail and institutional prices were confirmed at RM1.08 per share following the completion of the institutional book-building process, unchanged from the retail offer price announced on 29 Oct. As the final retail price matched the initial offer price, successful retail applicants will not need to receive any refunds.

Fundraising scale and market position

A total of 120 million shares allocated to eligible persons were also fully subscribed following the related clawback and reallocation. Likewise, the 1.61 billion shares offered to Malaysian and foreign institutional investors and selected investors under the institutional offering were fully subscribed.

Nineteen cornerstone investors subscribed for 41.2% of the institutional offering. Big Caring is expected to raise RM2.03 billion from the IPO, with RM637.8 million of the proceeds going to the company through the issuance of new shares.

Based on an enlarged share base of 7.38 billion shares and an IPO price of RM1.08, the group is expected to begin trading with a market capitalisation of RM7.97 billion. Notices of allotment will be posted to successful applicants by 18 Nov at the latest.

Big Caring is scheduled to list on 19 Nov and is set to become Malaysia’s second-largest IPO by funds raised this year, after Sunway Healthcare Holdings Bhd’s RM2.86 billion listing in March. Maybank Investment Bank Bhd and RHB Investment Bank Bhd are acting as joint principal advisers, joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the IPO, while AmInvestment Bank Bhd, UBS Securities Malaysia Sdn Bhd and UBS AG, Singapore Branch also have key roles in the offering.

We previously detailed Big Caring Group’s retail underwriting agreement ahead of its IPO on the Main Market of Bursa Malaysia.

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