Malaysian builder MMC Corp Bhd (MMCB.KL) has hired four joint global coordinators for a $1 billion IPO of its 51 percent-owned power unit, Malakoff Corp Bhd, two sources with direct knowledge of the matter told Reuters.
Plans for a 2013 relisting of the country’s largest independent power producer come shortly after Malaysia’s state development firm snapped up power assets from tycoon Ananda Krishnan and conglomerate Genting Bhd (GENT.KL) for a combined 10.8 billion ringgit ($3.46 billion).
CIMB, Credit Suisse, JP Morgan and Maybank were selected as the joint global coordinators for the Malakoff Corp initial public offering, the two sources said, declining to be named because the plans have not been officially announced.
At least one other bank is likely to be involved as a bookrunner, one of the sources said. Other details of the planned offering were not disclosed.
MMC and Malakoff officials were not immediately available to comment.
Syed Mokhtar Al-Bukhary, named by Forbes as Malaysia’s seventh-richest person, controls MMC and has been involved in other recent deals.
The reclusive tycoon took the ailing national carmaker Proton Holdings private earlier this year.
On June 11, MMC listed shares of its subsidiary Gas Malaysia Bhd GASM.KL – the country’s sole supplier of natural gas to the non-power sector.
Since the listing, its shares have climbed 22.27 percent above its IPO reference price of 2.20 ringgit per share.
MMC first de-listed Malakoff in 2006 in a privatisation deal worth some 9.3 billion ringgit, or 10.35 ringgit per share.
A cash cow, Malakoff recorded revenues of 5.47 billion ringgit in 2010, almost double the level in the fiscal year ended August 31, 2006, before it was eventually taken private.
Malakoff owns an effective generation capacity of 5,020 megawatts ( MW) in Malaysia and comprises six power stations that run on gas, oil and coal, according to its 2010 annual report. It also has power plants in Jordan, Algeria and Saudi Arabia.