Sovereign wealth fund Kuwait Investment Authority (KIA), money manager BlackRock Inc, and twenty other cornerstone investors will buy around 62 percent of Malaysian firm IHH Healthcare's up-to-$2bn IPO, the biggest takeup by such investors of any recent major offering in the region.
The cornerstone investors will buy 1.39 billion of the 2.23 billion shares on offer, according to a term sheet of the deal seen by Reuters on Friday.
Cornerstones such as BlackRock, the world's largest money manager, back many Asian listings, committing to buy large, guaranteed stakes and agreeing to a lock-up period during which they will not sell their shares.
Malaysia's Felda Global Ventures Holdings had nearly 32 percent of its $3.1bn IPO bought by cornerstones, while the $1.7bn deal by Haitong Securities in Hong Kong in April had orders from cornerstones worth more than one-third of the deal.
IHH Healthcare, controlled by state investor Khazanah Nasional Berhad, will offer up to 1.8 billion new shares in the IPO, while Dubai-based private equity firm Abraaj Capital will sell 434.7 million shares in the dual Kuala Lumpur and Singapore listing, the terms said.
Abraaj became a shareholder in IHH after Malaysian state investor Khazanah last year bought Turkish hospital group Acibadem, a firm in which the Middle Eastern fund was an investor.
The company will start taking orders for the initial public offering on July 4, with pricing slated for July 12, the terms said.
CIMB, Deutsche Bank and Bank of America-Merrill Lynch are the lead global co-ordinators, with Credit Suisse, DBS, Goldman Sachs and Maybank acting as joint bookrunners in the deal.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.