KUALA LUMPUR (July 3): 1Malaysia Development Bhd (1MDB) announced that it has commenced activities for the initial public offering (IPO) of its energy assets, slated to take place later this year.

In a statement, the sovereign wealth fund said the IPO is targeted to be listed on the Bursa Malaysia in the fourth quarter of 2014, with an expected offering size of more than US$ 3 billion.

The group plans to use the proceeds to fund future business growth, for partial repayment of its outstanding debt and general corporate purposes.

1MDB has appointed Deutsche Bank and Maybank as its Joint Global Coordinators for the exercise. Maybank, along with AmBank, have been selected as Joint Principal Advisors. Goldman Sachs is the advisor for the IPO.

Under its energy stable, 1MDB owns 16 power and desalination plants in six countries, including Egypt, Sri Lanka, Bangladesh, Pakistan and the UAE. The group has a net power generation capacity of 5570 MW.  

In Malaysia, the group is the second largest IPP in the country, with assets including Powertek, which operates three power plants in Melaka, Kuala Langat Power Plant in Selangor and coal-powered Jimah Energy in Negeri Sembilan.

In March this year, 1MDB and its partner Mitsui Co won the Project 3B bid to build a 2,000 MW coal-fired power plant.  

Business & Markets

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