The government's investment arm Khazanah Nasional Bhd has placed out 5 per cent of Telekom Malaysia Bhd (TM)'s stock in a deal valued at RM581.3 million.
The deal, executed yesterday, is believed to be the second largest share placement exercise in Malaysia so far this year.
Maybank Investment Bank and Nomura Singapore were the joint placement agents for Khazanah.
Some 178.9 million of TM shares were placed out to local and foreign institutional investors at a fixed price of RM3.25 each, sources said.
"There was overwhelming demand from both domestic and foreign institutional investors. The transaction was covered very quickly," a source told Business Times.
TM's share price has gained about 9.2 per cent so far this year, peaking at RM3.54 in mid-May.
With the sale, Khazanah's 42 per cent stake in TM has now been reduced to 37 per cent.
Khazanah has been been making an effort to sell down its holdings in government-linked companies in a bid to boost their free float and draw foreign funds back into the stock market.
It last year placed out shares in airport operator Malaysia Airports Holdings Bhd and power utility Tenaga Nasional Bhd.
Last week, the world's biggest cement-maker Lafarge SA sold 11.2 per cent in Lafarge Malayan Cement Bhd for RM594 million in the largest share placement deal in Malaysia this year. That deal was arranged by The Royal Bank of Scotland.
