KUALA LUMPUR, April 26 – Malaysian tycoon Ananda Krishnan is selling US$825 million (RM2.51 billion) worth of shares in offshore oilfield services provider Bumi Armada, sources said, in what will be the country’s biggest equity block sale in at least four years.
Ananda (picture), Malaysia’s second richest man, is engaged in a mass sell-off of assets. News on March 29th of a possible IPO of Astro All Asia Networks followed on the heels of a US$2.8 billion sale of his power assets and proposal to hive off a stake in his satellite operator MEASAT Global.
Capital markets activity in Malaysia has historically been slower than its Southeast Asian peers. But since the beginning of this year, the country has seen a string of announced and expected stock offerings surface.
That has gained the attention of both foreign investors and investment banks, which were rewarded last year in Malaysia through a series of IPOs.
The 600 million share block sold by Krishnan is being priced at a range between RM3.95 and RM4.09, the source said, representing a discount to the closing price of 3.5 to 6 per cent.
A call to a company spokeswoman was not immediately returned. CIMB is the bookrunner on the trade, the source said.
The deal is among several being cooked up in Malaysia.
Malaysia’s state investor Khazanah Nasional Bhd is expected to list its healthcare assets in Kuala Lumpur and Singapore in the second half of this year, a deal that could fetch US$1.5 billion.
The dual listing could be the fourth-biggest initial public offering in the city state’s history and Malaysia’s second-largest this year after the planned listing of Malaysian plantation group Felda Global Venture Holdings.
Malaysia’s Berjaya Group founder Vincent Tan plans to list 7-Eleven Malaysia Bhd and its Money Online (MOL) Internet business, next year in a move that will raise more than RM600 million (US$199 million) combined, local media have reported.
The listings of 7-Eleven and MOL are part of the billionaire’s pledge to donate half his wealth to charity and to reduce group borrowings.
Malaysia-based long-haul budget carrier AirAsia X is planning to list in the second half of this year, according to news reports.
The country’s IPOs last year were among the best performing in Asia. Among the big IPO gainers in Asia in 2011 were sugar refiner MSM Malaysia Holdings, which raised US$270 million in June, and Bumi Armada. – Reuters