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Malakoff Corporation Berhad Debuts On Bursa Securities

14 May 2015

Malakoff Corporation Berhad (“Malakoff” or the “Company”), the largest Independent Power Producer (“IPP”) in Malaysia and South East Asia in terms of total generation capacity, made its debut on Bursa Malaysia Securities Berhad (“Bursa Securities”) today.

Malakoff’s listing completes the largest initial public offering (“IPO”) to date in Malaysia this year, and the third largest in Southeast Asia over the past two years. Upon its debut, the market capitalisation of Malakoff, based on the IPO price of RM1.80 per share, was RM9 billion.

At the listing ceremony, YBhg Dato’ Sri Syed Faisal Albar, Chief Executive Officer of Malakoff, said, “Today, we are honoured to introduce a stronger Malakoff to Bursa Securities. Such a strong response is a clear reflection of the investing community’s confidence in our company, as well as in Malaysia as an attractive destination for investment.”

“Moving forward, we aim to expand our effective power generation capacity to 10,000 megawatts (MW) and our effective water production capacity by approximately 150% by 2020,” he added.

The proceeds raised by Malakoff and the selling shareholders from the IPO amounted to approximately RM1.80 billion and RM0.94 billion respectively, which brings the total proceeds raised from the IPO to approximately RM2.74 billion, of which RM2.3 billion was raised from shares offered to institutional investors through the bookbuilding exercise, investors approved by Ministry of International Trade and Industry and cornerstone investors.

The Institutional Offering of 1,279,240,000 shares was oversubscribed by 13 times.

The retail offering available for public subscription of 150,000,000 shares also attracted healthy interest and was oversubscribed by 1.24 times.

Malakoff is a multinational power and water company with a core focus on power generation and water desalination, as well as operation and maintenance and electricity and chilled water distribution. It currently has a total effective power generation capacity of 6,036 MW and total effective water production capacity of 358,850 m3 per day as at 20 March 2015.

Malakoff has power and water assets in Malaysia, the Middle East and North Africa region, and Australia. Malakoff’s 2013 acquisition of a 50% stake in Macarthur Wind Farm in Australia marked its entry into the renewable energy business, a potential area of growth for the company. Macarthur Wind Farm is the largest wind farm in the southern hemisphere.

The company’s business is supported by long-standing Power Purchase Agreements (“PPA”) that provide the company with stable and long-term cash flows. Malakoff’s weighted average remaining PPA term is approximately 13 years (based on the effective generation capacity of each of the Malakoff group’s and Malakoff’s associate’s power plants in Malaysia which are currently in operation), which the company believes is the longest among the operational IPPs in Malaysia.

Malakoff expects to add another 1,000 MW of coal-fired power generation capacity once construction of its Tanjung Bin Energy Power Plant is completed and the plant becomes fully operational. It is scheduled to commence commercial operations in 2016.

Maybank Investment Bank (“Maybank IB”) acted as the Transaction Manager. The Joint Principal Advisers and Joint Managing Underwriters are Maybank IB, CIMB Investment Bank (“CIMB”) and RHB Investment Bank (“RHB”). Maybank IB, CIMB, Credit Suisse (Singapore) Limited, JPMorgan Securities (Malaysia) Sdn Bhd, and J.P. Morgan Securities plc acted as the Joint Global Coordinators.

The Joint Bookrunners are Maybank IB, CIMB, RHB, Credit Suisse (Singapore) Limited, JPMorgan Securities (Malaysia) Sdn Bhd, J.P. Morgan Securities plc, Deutsche Bank AG, Hong Kong Branch, Merrill Lynch (Singapore) Pte Ltd, Morgan Stanley & Co. International plc, Nomura International (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and Hong Leong Investment Bank Berhad.

The Joint Underwriters are Maybank IB, CIMB, RHB, Affin Hwang Investment Bank Berhad, AmInvestment Bank Berhad, Bank Muamalat Malaysia Berhad, KAF Investment Bank Berhad, Hong Leong Investment Bank Berhad, Kenanga Investment Bank Berhad, MIDF Amanah Investment Bank Berhad and Public Investment Bank Berhad.

CLSA Singapore Pte Ltd and Macquarie Capital (Singapore) Pte Limited acted as the Co-Lead Managers.

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