Thursday, July 15, 2010

RHB IB buys more SunREIT units

KUALA LUMPUR: RHB Investment Bank (RHB IB), which is the stabilising manager for the Sunway Real Estate Investment Trust (SunREIT), has acquired a further six million units over the past two days, pursuant to the price stabilisation mechanism.

Filings by SunREIT showed that RHB IB bought the six million units over two days, July 13 and 14, at prices ranging between 87.5 sen and 88.5 sen.

The latest acquisitions take RHB IB's total buys to 35 million units.

Earlier filings by SunREIT showed that RHB IB bought 16 million units on July 8 at prices ranging from 87.5 sen to 89 sen. It acquired another 13 million units on July 9 and 12 million for between 87.5 sen and 88.5 sen each.

RHB IB was over-allotted 87.1 million SunREIT units and as the stabilising manager, it may buy up to 87.1 million units to undertake the stabilising action.

Under a Securities Commission (SC) regulation that has been in place since January 2008, the stabilising mechanism allows the underwriter to over-allot a certain number of shares in an IPO, with an undertaking by the to-be-listed company to issue new shares towards covering the over-allotment, if need be.

SunREIT closed unchanged at 88 sen on Wednesday with 5.1 million units done. The IPO was priced at 90 sen for institutions and 88 sen for retail investors.


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