IHH priced its shares at 2.80 ringgit ($0.88) a share, near the indicative price of 2.85 ringgit a share, it cited two people familiar with the matter.

It said IHH attracted strong investor interest with its institutional portion over-subscribed by more than 60 times.

The IPO (initial public offering) both in Kuala Lumpur and neighbouring Singapore means Malaysian companies will have had two of the biggest public offerings this year amid weak global markets.

The shares will begin trading on both Malaysia's and Singapore's stock exchanges on July 25.

Social networking giant Facebook which was this year's largest deal raised $16 billion from its IPO in May but its shares have since plummeted.

Malaysia's Felda Global Ventures was the second biggest deal having successfully raised US$3 billion last month.

Prime Minister Najib Razak at the launch of IHH prospectus last week said the listing marked very significant progress in the country's plans to divest government-linked companies.

IHH, which is majority-owned by Malaysian sovereign wealth fund Khazanah Nasional, reserved 62 per cent of its offering for 22 so-called cornerstone investors.

Global accountancy firm Ernst and Young had said the Kuala Lumpur exchange, Bursa Malaysia, was the third-biggest in terms of funds raised in IPOs in the second quarter of 2012, following NASDAQ and the New York Stock Exchange.

Analysts put the success down to factors including government efforts to encourage IPOs and boost the economy as elections approach, and a push to divest state-owned firms to woo foreign investors, as in the case of Felda.

The volatile economic environment has forced the delay of other major public offerings in Asia, including a planned $2.5 billion Formula One listing in Singapore.

IHH plans to use about 90 per cent of the gross proceeds from the exercise to repay borrowings within the next year.