Malakoff Planning to Raise US$1.5B in 4Q Malaysia IPO -

14 Jun 2012

Malaysia power producer Malakoff Corp. is looking to raise as much as 1.5 billion U.S. dollars through an initial public offering in the fourth quarter, a person familiar with the situation said Thursday. Banks have been asked to submit their proposals as part of a mandating process by Malakoff to manage the IPO, the person said. The proposals have to be submitted by Monday, the person said, adding that the exact timing of the launch of the offering would depend on market conditions. Malakoff, which was taken private by construction and power company MMC Corp. (2194.KU) in 2007, wasn't immediately available for comment. The IPO plans by Malaysian companies come at a time when worries about the euro-zone debt crisis are souring investor sentiment. Facebook Inc.'s stock declines after listing on Nasdaq have added to investor wariness of IPOs, and Asia has seen IPOs being scrapped or delayed including a US$2.5 billion Singapore deal by motor-sport franchise Formula One Group as well as a US$1 billion Hong Kong IPO by U.K.-based jeweler Graff Diamond Corp. However, new listings in Malaysia appear to be bucking the recent weakness in the global equities market. Late Wednesday, state-owned Felda Global Ventures Holdings Bhd., raised $3.13 billion through an IPO, making it the second biggest IPO this year after Facebook Inc.'s $16 billion offering, people familiar with the transaction said. IHH Healthcare Bhd., majority-owned by Malaysia's sovereign wealth fund Khazanah Nasional Bhd., is seeking to raise $2 billion in an IPO next month, people familiar with these transaction said. The person said IHH has secured strong commitments from cornerstone investors including Middle Eastern sovereign wealth fund Kuwait Investment Corp., Malaysia's largest pension fund, the Employees Provident Fund, as well as International Finance Corp., an investment arm of the World Bank.