Malakoff delays IPO to 2013

by **hlk** Sat 07 Jul 2012, 20:24

KUALA LUMPUR: Malakoff Corp Bhd is delaying its planned initial public offering (IPO) to the year 2013, sources have told StarBizWeek on condition of anonymity.

“Yes, there has been a delay and the plan is to list by 2013. Early 2013 that is,” a source said but did not want to elaborate much further on the reasons for the delay. The other internal source also confirmed this delay but also declined to elaborate.

Sources had told the Wall Street Journal that the reason for the delay was because the company needed to complete “a lot of paperwork” before it can eventually move ahead with the IPO, adding that this deferment did not mean investor appetite was ebbing.

Reports had earlier indicated the listing of Malakoff was expected to be completed by this year to ride on increasing investor appetite for IPOs in the region despite the economic turmoil in the West.

Bloomberg had earlier reported that the deal to relist Malakoff could raise as much as US$1bil (RM3.17bil) from the capital markets.

Malakoff's brand name is no stranger to capital market followers in Malaysia as the biggest independent power producer had been listed before on the Bursa Malaysia way back in 1976.

It had been delisted then in July 2007 after a privatisation offer made initially in May 2006 by its single largest shareholder, MMC Corp Bhd, then to acquire all the assets and undertakings; and assume all the liabilities of Malakoff for a total cash consideration of not less than RM9.3bil.

Post-privatisation, Malakoff had moved on to expanding its business and had also been reported to be eyeing several potential power and water deals locally and abroad.

Today, the company has a total power capacity generation of about 9,800 megawatts from eight power plants located both locally and overseas, the information sheet on its corporate website shows.

Other than power generation, the company also provides water desalination services in Algeria and Saudi Arabia.

Analysts said that the eventual relisting of Malakoff was expected to ensure the IPO deal pipeline in Malaysia remained buoyant and interest from funds both locally and overseas could stay well onto 2013.