| KUALA LUMPUR
KUALA LUMPUR Jan 21 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
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
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)