malaysian-timber-company-prices-hk-ipo-at-the-top

Malaysian timber company prices HK IPO at the top

Samling raises $280 million at a premium to smaller Malaysian peers amid expectations that wood prices will continue to climb.

By Anette Jönsson

March 01, 2007

Malaysian forestry and timber products company Samling Global has fixed the price of its Hong Kong initial public offering at the top end of the range at HK$2.08, allowing it to raise the maximum $280 million. The outcome was entirely in line with expectations after overwhelming demand from both institutional and retail investors.

If the interest persists after the stock starts trading on March 7 and the 15% overallotment option is exercised in full, total proceeds will rise to $322 million.

Investors were keen on the companyÆs growth prospects amid increasing demand for timber and tight supply û a combination that analysts expect will lead to a sustainable rise in selling prices this year....

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