Jun 19, 2013

    1MDB jumps on IPO bandwagon in Malaysia

    SOVEREIGN wealth fund 1Malaysia Development Berhad (1MDB) plans to raise about US$1 billion (S$1.26 billion) through a public listing of its power assets in Malaysia next year, Dow Jones Newswires reported.

    The proposed initial public offering is the latest in a string of announced or rumoured listings that could return Malaysia to the ranks of top regional IPO markets.

    The funds raised through the share sale will help pay off some of the Malaysian investment company's debts, Dow Jones said in its report on Monday, quoting people familiar with the plans.

    Government-owned investor 1MDB has bought several power plants since last year, including Malaysian tycoon Ananda Krishnan's power-generation business for US$2.7 billion and Genting's domestic energy operations for RM2.3 billion (S$920 million), Dow Jones said.

    1MDB is a strategic investment company focused on spurring development in key economic sectors.

    Malaysian companies raised billions in share sales last year, making the country South-east Asia's top IPO market by deal value. But activity has cooled in recent months, as investors held their breath in the run-up to the country's May 5 election.

    At least half a dozen new IPOs have been reported or are in the works, including that of Malaysian budget long-haul carrier AirAsia X.