1MDB seeks over US$3b from IPO


KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) is seeking to raise more than US$3 billion (RM9.6 billion) through a stock market listing of its energy assets, in what is set to be the nation’s second-biggest initial public offering (IPO).

The state-owned strategic development company has appointed Deutsche Bank and Malayan Banking Bhd (Maybank) as its joint global coordinators for the exercise.

Maybank and AmBank have been picked as joint principal advisers, while Wall Street bank Goldman Sachs is the adviser for the IPO, 1MDB said in a statement yesterday.

Malaysia’s largest IPO was by Felda Global Ventures Holdings Ltd, which raised US$3.1 billion in 2012.

“The IPO is targeted for listing on Bursa Malaysia... 1MDB expects to use the proceeds to fund future business growth, for partial repayment of its outstanding debt and general corporate purposes,” the company said.

1MDB owns 16 power and desalination plants in six countries.

It is the second-largest independent power producer in Malaysia.

1MDB also develops properties. Its unit, 1MDB Real Estate Sdn Bhd, is developing financial hub Tun Razak Exchange here.