PETALING JAYA: 7-Eleven Malaysia Holdings Bhd (formerly known as Seven Convenience Bhd) is expected to raise US$226mil (RM732mil) from pricing its sale to potential cornerstone investors at RM1.38 per share, sources familiar with the matter told Reuters.
There are 10 cornerstone investors that could sign up for the initial public offering while the IPO price for other investors have yet to be set, the sources said.
Book building is expected to start in the first week of May and funds raised would be used for the company’s expansion plans.
At RM1.38 per share, this price translates into a forward price to earnings multiple (PEM) of 19.5 times that is higher than the FBM KL Composite Index’s forward PEM of almost 15 times.
The Securities Commission (SC) has approved the listing of convenience chain outlet controlled by tycoon Tan Sri Vincent Tan in February this year.
This is not the first time Tan had listed 7-Eleven, the company was first listed under Intan Utilities Bhd in 2001 when it was privatised six years later.
It was brought back to the public sphere again four years ago as Berjaya Retail Bhd and thereafter privatised again a year later.
The company’s attempt to be re-listed hit a bump in November last year, with reports stating that the SC had rejected the proposal due to valuation issues.
In January this year, the company put in a fresh proposal and got approval a month later.
The company will now list sometime next month, reports said.
Meanwhile, 7Eleven’s recent draft prospectus in January showed that the new IPO will offer up to 530.33 million shares for sale on the Main Market of Bursa Malaysia, with 348.94 million shares in the the offer for the sale and another 181.39 million in new shares offering.
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