1MDB plans to raise RM9.6bil from IPO
PETALING JAYA: 1Malaysia Development Bhd (1MDB) plans to raise about US$3bil (RM9.6bil) from the proposed listing of its energy assets on Bursa Malaysia, which is slated for the fourth quarter of this year.
The state investment fund said in a statement that proceeds from the initial public offering (IPO) would be used to fund future business growth, partial repayment of its outstanding debts and general corporate purposes.
1MDB has appointed Deutsche Bank AG and Malayan Banking Bhd (Maybank) as the joint global coordinators for the IPO, while Maybank and AmBank (M) Bhd will be joint principal advisors, with Goldman Sachs made advisor for the IPO.
1MDB, whose advisory board is headed by Prime Minister Datuk Seri Najib Tun Razak, owns 16 power and desalination plants in six countries, including Egypt, Sri Lanka, Bangladesh, Pakistan and the United Arab Emirates. The group has a net power generation capacity of 5,570 megawatt (MW).
In Malaysia, the group is the second largest independent power producer, with assets including Powertek Bhd, which operates three power plants in Malacca; Kuala Langat Power Plant (KLPP) in Selangor and coal-powered Jimah Energy in Negeri Sembilan.
In March this year, the fund and its Japanese partner Mitsui Co won a bid to build a 2,000MW coal-fired power plant project worth RM11bil in Negri Sembilan.
1MDB, which was launched in 2009, had accumulated total borrowings of RM36.2bil as at the end of March while its annual debt service stood at RM1.6bil. In 2012, its total debt stood at only RM3.4bil. The fund had recorded an after-tax profit of RM778.2mil for the financial year ended March 31, 2013 with KLPP and Powertek contributing a profit of RM741mil.