KUALA LUMPUR, April 17, 2015:
Institutional investors bought into Malaysia’s biggest listing in nearly three years, oversubscribing an initial public offering by Malakoff Corporation Bhd worth up to US$756 million (RM2.74 billion) by more than two times, according to three people with direct knowledge of the matter.
Bookbuilding for the institutional tranche of the IPO by Malaysia’s largest independent power producer – equal to more than 25% of the total offering – was set in a tight range between RM1.75 and RM1.80 per share, sources had said.
The up to RM2.74 billion listing comes as many local companies, susceptible to significant volatility in energy prices and the ringgit, opt against embarking on IPOs, for fear that volatility could squeeze their valuations. The IPO also serves as a gauge of investor sentiment on the planned US$3 billion IPO of the Edra Global Energy Bhd power unit of indebted Malaysian state investor 1MDB’s, bankers have said. Edra Global is a direct and smaller competitor of Malakoff.
Malakoff was not immediately available to comment.