Khazanah to rake in RM4.9b from IHH listing

KUALA LUMPUR: The listing of Integrated Healthcare
Holdings Sdn
Bhd (IHH) next month will see the government's investment holding
company, Khazanah Nasional Bhd, raking in RM4.9 billion in the form of
unrealised profit via the 62 per cent stake held in the international
health services provider company.

The IHH's prospectus will be
simultaneously launched today at the Securities Commission Malaysia and
the Monetary Authority of Singapore for the company's shares to be
listed on the bourses of the two countries next month, according to a
source close to the floatation.

It is understood that among the
contents of the prospectus are the share purchase by the International
Trade and Industry Ministry and international major strategic investors
at RM2.85 a share.

With RM1.56 average price of IHH's shares
before floatation, Khazanah is set to rake in RM4.9 billion via the
3.85 billion shares held in IHH.





"IHH's listing has attracted over-subscription from major strategic
investors worldwide and this will silence critics who have been saying
that Khazanah had overpaid for the purchase of Parkway Holdings
Singapore in 2010.

"In only two years after Parkway's
acquisition, Khazanah has consolidated its health assets to emerge as
the world's second biggest private hospitals operator," said one of the
sources.

The source said Prime Minister Datuk Seri Najib Tun
Razak's New Economic Model (NEM) had transformed Malaysia from a small
player in the private hospital world to emerge as among the world's
second best today.

Of late, IHH has been active in acquiring new
assets, among them are the purchase of big hospital groups from several
countries, which were concluded between 2010 and 2012 when Najib was
Khazanah chairman.

The health sector has been identified as the "champion sector" under the NEM.

Currently,
Khazanah has several hospital groups under its stable. They are
Turkey's Acibadem AS, Parkway Holdings in Singapore, Apollo Hospitals
Enterprise Ltd in India and Pantai Hospitals and International Medical
University based in Malaysia.

IHH's double listing in Malaysia and Singapore in July offers 2.23 billion shares at RM2.85 a share to raise RM6.36 billion.

Kencana
Capital Sdn Bhd, in which Datuk Mokhzani Mahathir is the lion
shareholder, has been reported that he would become one of the major
strategic investors in the listing exercise, making a comeback to the
health industry after disposing his stakes in Pantai Holdings a few
years ago.

Kuwait investment holdings company, Kuwait Investment
Authority (KIA), is also expected to invest RM450 million in IHH's
initial public offering (IPO) in Malaysia and Singapore, making it the
second biggest investor in IHH.

The IPO has also attracted the
interest of several strategic investors, among them are Blackrock Inc,
Capital Group, Och-Ziff Capital Management Group, Government of
Singapore Investment Corp, Fullerton Fund Management, AIA Group and
Hwan Investment Management.

A member of the World Bank Group, International Financial Corp (IFC), also has plans to participate in the IHH listing.

The
prime minister's move is bearing fruition now as evident from Malaysia
emerging as a major player in the healthcare sector and the IFC's
support reflects the World Bank's backing to Najib's NEM.

To
date, subscription to the major strategic investors' portion has
exceeded 1.31 times; applications are for some two billion shares
vis-a-vis 1.53 billion shares offered to them.

The IHH is
Asia's biggest hospital operator, with 62 per cent stake owned by
Khazanah, 26.6 per cent by Japan's Mitsui & Co, while Dubai-based
Abraaj Capital holds 7.1 per cent and 4.2 per cent by Turkey Hospital
Group head Acibadem Mehmet Ali Aydinlar.

This is Malaysia's
biggest IPO this year after the IPO of Felda Global Ventures Holdings
Berhad, which will raise RM10.5 billion at RM4.55 a share.

The IHH will remain as Asia's biggest floatation for this year.

Of the 2.25 billion shares on offer, 720 million have been subscribed by the International Trade and Industry Ministry.

The balance will be offered to retail investors, staff and health workers.

Bank of America-Merril Lynch, Deutsche Bank and CIMB Group are joint lead coordinators for the listing.

Credit
Suisse, DBS, Goldman Sachs and Malayan Banking are joint bookrunners
while Nomura, OCBC and UBS are co-lead managers. Bernama