Malaysia's Ranhill Energy to list by Q2 in $332 mln IPO -sources

KUALA LUMPUR Sun Jan 20, 2013 9:25pm EST

KUALA LUMPUR Jan 21 (Reuters) - Ranhill Energy and Resources Bhd, a Malaysian energy and water company, is expected to list on the local stock exchange by the second quarter of this year in a deal that will likely raise more than 1 billion ringgit ($332 million), two sources close to the deal told Reuters.

The initial public offering could be among the first after a general election that Malaysian Prime Minister Najib Razak must call by the end of April. The IPO pipeline in the Southeast Asian country has slowed ahead of the election because of concerns about market volatility, analysts and investment bankers have said.

"Second quarter at the latest, but it depends on the elections," said one of the sources, who declined to be named because the matter was private.

Ranhill Energy officials were not immediately available to comment.

Ranhill Energy, which counts its president and chief executive, Hamdan Mohamad, and regional investment fund Cheval Infrastructure Fund LP among its shareholders, provides engineering services for the onshore and offshore oil and gas, refinery and petrochemical industries.

It also owns and operates two 190-megawatt combined-cycle gas fired turbine power plants in the west Malaysian state of Sabah, and was awarded an exclusive licence by the government to provide source-to-tap water supply services in Johor, the second most populous state in the country.

Ranhill Energy will use about 70 percent of the IPO proceeds to redeem Islamic notes and bonds, 19.1 percent to pay off company acquisitions, 7.1 percent to expand its water business in China, and the rest for listing expenses, according to a draft prospectus filed on Jan. 13.

The company has given no information on the amount of shares to be offered, the pricing, or a timeframe for the IPO.

Ranhill Energy is part of Ranhill Bhd, which was bought out by its management in 2011 for 90 sen per share, valuing the company's equity at 538 million ringgit ($179 million).

Maybank Investment Bank is the principal adviser for the IPO. CIMB Investment Bank and Maybank Investment Bank are the joint global coordinators and bookrunners. They are also the underwriters for the deal.

($1 = 3.0130 Malaysian ringgit) (Editing by Chris Gallagher)