KUALA LUMPUR, July 15 Malaysia's Ranhill Energy
& Resources Bhd has raised about 753 million ringgit
($237.02 million) in a share sale, pricing the deal at the top
of expectations, a source with direct knowledge of the deal said
Ranhill, which plans to use the proceeds to repay debt and
expand into China's water industry, priced the initial public
offering (IPO) at 1.85 ringgit per share versus an indicative
price range of 1.70-1.85 ringgit, said the source, who was not
authorised to speak publicly on the matter.
IPOs and secondary share offerings have picked up in
Malaysia due to an easing in political uncertainty after general
elections in May.
AirAsia X Bhd made its debut last week and UMW
Holdings Bhd is planning to list its oil and gas unit
by the end of the year in a deal set to raise up to $1 billion,
the country's largest this year.
Ranhill and investment fund Cheval Infrastructure Fund LP, a
shareholder, offered 407 million shares or about 43 percent of
the company's enlarged share capital.
After the offering, Chief Executive Hamdan Mohamad will be
the company's biggest shareholder with 39 percent of the company
while Cheval will own 15.8 percent. Cornerstone investors
include Corston-Smith Asset Management Sdn Bhd and Eastspring
While the vast majority of the proceeds will go towards
redeeming Islamic notes and bonds, it will also invest in
expanding its water treatment capacity in China, where it aims
to have capacity of 1,000 million litres per day (MLD) in five
It currently operates five water and waste water treatment
plants there, with a combined capacity of 270 MLD.
China plans to spend $850 billion over the next decade on
improving its scarce and polluted water supplies and many Asian
water firms, including Singapore's Hyflux Ltd and
United Envirotech Ltd, are keen to make their mark in
Ranhill said the expansion in capacity is expected to give
the company 500 million ringgit in revenue a year with a profit
of around 150 million ringgit. It earned 150 million ringgit in
revenue from its water business in China last year.
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 = 3.1770 Malaysian ringgit)
(Reporting by Yantoultra Ngui; Editing by Stuart Grudgings and