KUALA LUMPUR, April 17 — Malakoff Corporation Bhd, Malaysia’s largest independent power producer, is expected to raise up to RM3.15 billion in proceeds from the offering of 1.75 billion shares at a maximum indicative price of RM1.80 per share, subject to final determination.

Chairman Tan Sri Syed Anwar Jamalullail said the initial public offering (IPO), set for May 15, would be the largest listing since 2012, representing up to 30.4 per cent of Malakoff’s enlarged issue and paid-up capital.

“The IPO proceeds will be used to fully redeem an RM1.8 billion Junior Sukuk Musharakah,” he told reporters after the launch of the IPO prospectus here today.

The prospectus was launched by Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar.

He said the amount comprised 521.74 million existing shares and a public ssue of 1 billion new shares.

According to an analyst, the listing of Malakoff would reduce the gearing for MMC Corporation Bhd, Malakoff 51-per cent shareholder, substantially to 0.6 times from 2.7 times at present.

Malakoff’s debt made up 73 per cent of MMC total debt.      

Syed Anwar said Malakoff has a proven track record of development, acquisition and operation and maintenance in the power generation and water desalination industries.

“We are well positioned to benefit from the continued growth in electricity and water demand in our target market,” he said.

He said the company has set a dividend policy of not less than 70 per cent of earnings.

Last year, Malakoff revenue stood at RM5.59 billion with the power division contributing RM5.39 billion.

The company’s total asset stood at RM29.33 billion with overseas asset made up between 30 and 35 per cent of the company’s total assets.

MMC group managing director Datuk Seri Che Khalib Mohamad Noh said Malakoff is poised to grow on the increasing demand of power in the region and looking at taking part in addressing the region’s power needs.

Upon Malakoff listing, MMC stakeholding would be diluted to 37.8 per cent. — Bernama