The listing of Sunway Bhd, the merged entity of Sunway Holdings Bhd and Sunway City Bhd, will proceed as planned despite recent turbulence in the stock market.
The shares of Sunway Bhd are scheduled to be floated on Bursa Malaysia on August 23 and expected to have a market capitalisation of over RM3.5 billion.
"We have no intentions to defer the listing," Sunway Bhd's executive director, group strategy and corporate development Sarena Cheah said.
She was responding to a Business Times question on whether there was a likelihood of a possible postponement of the listing given the current volatile market conditions.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index seesawed last week after taking its lead from the US market which swung widely on concerns of the health of the world's largest economy.
Founder and chairman of the Sunway group, Tan Sri Jeffrey Cheah, decided to merge two of the listed units to create an enlarged entity with higher liquidity. This is a RM4.5 billion merger exercise involving cash and share swap.
Sunway Bhd will have two core businesses in property development and construction, with a total landbank of more than 891 ha.
The combined landbank will have a total gross development value of RM25 billion and a potential market capitalisation of over RM3.5 billion.
Shares of Sunway Holdings and SunCity have been suspended since August 2 to facilitate the capital reduction and repayment , as part of the merger exercise. – Business Times
