* EPF, Kuwait to be biggest investors in IHH IPO -sources
* This is KIA's biggest investment in Asian IPO since 2010
* IHH is second-biggest IPO in Malaysia in 2012 after Felda
By Saeed Azhar and Yantoultra Ngui
SINGAPORE/KUALA LUMPUR, June 14 Sovereign wealth
fund Kuwait Investment Authority (KIA) will invest about $150
million in Malaysian firm IHH Healthcare's planned $2 billion
IPO in Kuala Lumpur and Singapore, two sources with direct
knowledge of the deal said.
The investment is poised to make KIA the second-biggest
investor in the Malaysian healthcare firm's IPO. It will be the
fund's biggest investment in an Asian flotation since it poured
$800 million into Agricultural Bank of China's
$21 billion offering in 2010.
With a heavy reliance on cornerstone investors and domestic
demand, Malaysia has bucked the dismal IPO trend in other
markets such as Singapore, where motor racing firm Formula One
decided to delay its near $3 billion offering due to volatile
In the latest blow to Asian deals, soccer club Manchester
United also ditched its plans for an Asian stock market
flotation and is preparing to list in the United States, IFR
reported on Wednesday.
Cornerstone investors back many Asian listings, committing
to buy large, guaranteed stakes and agreeing to a lock-up period
during which they will not sell their shares.
KIA, which manages $280 billion in assets, invests in
big-ticket IPOs, but has been lately keeping its powder dry amid
volatile markets, banking sources have said earlier.
Malaysia pension fund EPF will separately invest about $200
million in the IHH IPO, making it the biggest investor in the
deal, said the sources, who could not be named because the
details of the deal are not public.
"These two are the biggest cornerstone investors in IHH,"
one of the sources told Reuters.
IHH declined to comment. EPF and KIA could not be
immediately reached for comment.
IHH Healthcare, which is partly owned by state investor
Khazanah Nasional Berhad, is the country's second-biggest IPO
this year after Felda Global Ventures Holdings priced
its $3.1 billion IPO late on Wednesday near the top of an
The IHH IPO is expected to be priced in the second week of
July and the listing is scheduled in the week starting July 23,
according to a term sheet seen by Reuters.
IHH this week already locked in BlackRock Inc,
Capital Group and Och-Ziff Capital Management Group as
cornerstone investors for its dual listing, sources told
The board of International Finance Corp (IFC), the financial
arm of the World Bank, has also approved a proposal to become a
cornerstone investor in IHH's offering, a source said.
IHH has been on an aggressive buying spree in the past few
years. It now owns Turkish hospital group Acibadem AS
, Singapore's Parkway Holdings, India's Apollo
Hospitals Enterprise Ltd and Malaysia-based Pantai
Hospitals and International Medical University.
The firm is offering 2.2 billion shares, out of which 80
percent will be new shares. The sale amounts to some 25 percent
of its enlarged capital.
CIMB, Deutsche Bank and Bank of
America-Merrill Lynch are the lead global co-ordinators, with
Credit Suisse, DBS, Goldman Sachs and
Maybank acting as joint bookrunners in the deal.
Nomura, Singapore's OCBC and UBS
are the co-lead managers.