KUALA LUMPUR: Sunway Construction’s share price closed below the offer price of RM1.20 on Wednesday -- the second day after its trading debut on the Main Market -- due to cautious mood on Bursa Malaysia which had been impacted by foreign selling pressure.
It closed down two sen to RM1.18. There were 19.72 million shares done at prices ranging from RM1.16 to RM1.21.
The KLCI was down 0.71 of a point or 0.04% to 1,698.99 after hitting a high of 1,702. Turnover slowed down to 1.36 billion shares valued at RM1.73bil.
Dealers said some of the selling of SunCon could be from entitled shareholders who received one unit for every 10 shares held.
RHB Investment Bank, which was the stabilising manager, purchased one million shares at RM1.20 each on Wednesday.
On Tuesday, SunCon ended its first trading day flat at RM1.20 due to the weaker domestic market sentiment and jittery China markets.
MIDF Equities Research had accorded a target price of RM1.38. SunCon is the largest pure-play integrated construction services provider offering end-to-end total construction solutions.
Under its IPO, it offered up to 573.71 million shares of 20 sen each at an indicative retail price of RM1.20 each.
The IPO involved the distribution of 175 million shares to entitled shareholders on one for every 10 shares held.
It also offered for sale up to 398.70 million shares to Malaysian and foreign institutional and selected investors including Bumiputera investors.
The retail offering comprised of 71.109 million shares to the eligible directors and employees and the public at RM1.20 a share.
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