As such, there is an anticipated 1.5% to 13% growth in FY16 to FY17 RNI as the positive reversion will accrete mostly in FY17. The placement exercise attracted overwhelming demand of over RM6.2bil from institutional investors yesterday, which translates to an oversubscription rate of 2.6 times. Sime Darby will raise RM2.36bil from the share placement exercise, which will go to repayment of debt, funding capital expenditure and working capital as well as payment for the placement expense. The group has also allocated RM14mil to the costs of the placement exercise. The placement exercise is part of the group’s plan to deleverage and lower its gross gearing ratio from 57% at end-June 2015, to around 40%.

Source: The Star October 06, 2016 23:37 UTC