February 28, 2014 / 3:30 AM / 4 years ago

7-Eleven Malaysia to delay IPO until May at the earliest -sources

KUALA LUMPUR, Feb 28 (Reuters) - 7-Eleven Malaysia Holdings Bhd will postpone its initial public offering (IPO) from March until May at the earliest because the convenience store operator is updating its financial accounts, two people with knowledge of the matter said.

The company, controlled by billionaire Vincent Tan, had planned to list in December but delayed until March after the regulator raised queries mainly about valuation.

“Listing (will be) probably in May or June,” said one of the people, who is not authorised to speak publicly on the matter and so declined to be identified. “They are updating the 2013 financial accounts and hence the delay.”

The company is likely to be valued less than the 700 million ringgit ($214 million) estimated after the regulator’s queries, said one of the people.

Representatives of 7-Eleven Malaysia were not immediately available to comment.

The company, formerly Seven Convenience Bhd, is Malaysia’s largest convenience store chain with almost 1,500 outlets. It plans to put most of the IPO proceeds toward its goal of opening 600 stores over the next three years, from around 300 over the past three years.

The company hired Kenanga Investment Bank and Maybank Investment Bank as joint principal advisers, joint bookrunners and joint underwriters. UBS is joint global coordinator and joint bookrunner and CIMB Investment Bank is joint bookrunner.

7-Eleven Malaysia’s IPO would follow last year’s listings of fellow Tan companies Caring Pharmacy Group Bhd and Berjaya Auto Bhd, which raised a combined 100 million ringgit.

Tan, Malaysia’s 10th-richest person according to Forbes, also plans a $300 million IPO of Internet payment company MOL Global Pte Ltd, owner of social networking site Friendster Inc, on the U.S. Nasdaq index as early as next year.

Tan had planned to list Welsh football team Cardiff City at the Kuala Lumpur Stock Exchange but the team’s cash flow is weaker than the bourse’s minimum requirements, people with knowledge of the matter told Reuters in December.

Tan may instead list the team on Singapore’s Catalist Exchange for small companies, the people said.

$1 = 3.2700 Malaysian ringgit Reporting by Yantoultra Ngui; Editing by Christopher Cushing

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