Sovereign wealth fund 1Malaysia Development
Bhd has said it plans to raise more than $3 billion by listing its energy
assets, in what would be the country's second biggest initial public offering
(IPO).
The
state-backed investor said Thursday it had "commenced activities" to
list on Bursa Malaysia in the fourth quarter of the year.
The
proceeds from the offering will go towards funding future growth and parts of
the company's outstanding debt, 1MDB said.
But
analysts have cast doubt on the long-term prospects of the stock, pointing to
uncertainty over its ability to service its high debt, which stood at $37
billion ($11.6 billion) by the end of March 2013.
However,
1MDB says its debts are backed by operational assets "with healthy cash
flows and strong growth potential".
Ooi
Chin Hock, a dealer with Malaysia's M&A Securities, on Friday told AFP:
"This IPO is of national interest so definitely the government will want
to make it a success."
The
fund owns 16 power and desalination plants in Malaysia, Egypt, Sri Lanka,
Bangladesh, Pakistan and the United Arab Emirates.
Germany's
Deutsche Bank and Malaysia's Maybank have been appointed as 1MDB's joint global
coordinators for the IPO, while Goldman Sachs is the advisor, the company said.
Malaysia,
Southeast Asia's third-largest economy, has seen a flurry of big listings in
the past two years.
Palm
oil giant Felda Global Ventures raised a record $3.25 billion in 2012, helping
the country's stock market the world's fifth-largest for IPOs that year.
Another
palm oil giant, IOI Corp., raised $570 million by spinning off its property
business and listing it in January.
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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