Southern Steel Bhd. surged by a record after people familiar with the matter said Hong Leong Group, a conglomerate controlled by billionaire Quek Leng Chan, is considering selling its majority stake in the unit and seeking a valuation of as much as $200 million.

The Malaysian company is working with advisers on the planned divestment of its 70% stake in the Kuala Lumpur-listed arm, the people said. A deal could value Southern Steel between $100 million to $200 million, the people said. At the top of the range, it would be more than double the firm’s current market capitalization of about $89 million.

Shares of Southern Steel jumped by a record 30% in Kuala Lumpur after the Bloomberg News report. The stock was still 27% higher as of 4:34 p.m. local time.

Hong Leong and its advisers have reached out to companies in the same industry as well as financial investors to gauge their interest, the people said, asking not to be identified as the information is private. Deliberations are ongoing and the Malaysian conglomerate could still hold onto its stake, they added.

Representatives for Hong Leong Group and Southern Steel didn’t respond to requests for comment.

Southern Steel was founded in 1963, and its galvanized sheet plant in Penang, north of Kuala Lumpur, started production two years later, according to its website. The company was listed on the Bursa Malaysia, then known as the Kuala Lumpur Stock Exchange, in 1993. Hong Leong, which was Southern Steel’s partner since 1981, became the largest shareholder after buying shares from others including NatSteel.

(Updates Southern Steel’s share moves in third paragraph.)