Ekuinas set for first IPO by mid-2014

PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas) is set to make its first initial public offering (IPO) by the middle of the year through Icon Offshore Bhd.

The listing on Bursa Malaysia is a major milestone for Ekuinas since its establishment in September 2009 to nurture Bumiputera companies into leading players.

Ekuinas chief executive officer Datuk Abdul Rahman Ahmad said the government-owned private equity fund management company has hired three local and foreign investment bankers to handle the deal.

“This listing is part of Ekuinas’ role to create value for Bumiputera firms and then list them on the stock exchange to become big players.

We will be making the submission to the regulators soon,” Abdul Rahman told Business Times at the company’s headquarters, here, recently.

Ekuinas, which has a war chest of RM2.4 billion, has been nurturing Icon Offshore to become a larger company with international presence.

As at 2013, Icon Offshore was Malaysia’s third-largest offshore supply vessel provider with 36 vessels operating in waters off Malaysia, Vietnam and Qatar.

Icon Offshore’s assets are worth more than RM1 billion. In 2012, its after-tax profit grew by 31.3 per cent to RM66.3 million on the back of RM258.9 million revenue.

Abdul Rahman, however, declined to reveal the value of the listing exercise.

He said Ekuinas plans to play a bigger role this year after a RM600 million injection from the government, and is set to make its first investment for the year as early as April.

He said although 2013 was a record-breaking year for Malaysian equities, Ekuinas was not active because of the 13th General Election in May.

The company made three new investments worth RM121.1 million last year.

Since its establishment, Ekuinas has made 15 investments with commitments amounting to RM1.6 billion.

Ekuinas only invests in Bumiputera firms to ensure equitable and sustainable Bumiputera participation in the economic pie and eyes only five sectors — education, oil and gas, fast-moving consumer goods, retail and leisure, and healthcare.

Ekuinas will take up a minimum of 20 per cent stake in each company, keep its investments for five to seven years and add value to the company before selling it.

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