Exclusive Malaysia’s Tenaga designs $1 bln IPO for electricity enterprise, sources say

A see of Tenaga Nasional Berhad headquarters in Kuala Lumpur, Malaysia, October 13, 2015. REUTERS/Olivia Harris

SINGAPORE, Aug 12 (Reuters) – Malaysian electrical power utility Tenaga Nasional Bhd (TENA.KL) ideas to set start the approach upcoming year for a probable $1 billion listing of its energy technology small business, resources shut to the issue informed Reuters.

In what would be the country’s biggest preliminary community providing (IPO) in a ten years, TNB Energy Technology Sdn Bhd, known as TNB Genco, could be valued at about $4 billion, the resources mentioned, declining to be named owing to the confidential character of the subject.

Proceeds from the providing will be utilized to mature TNB Genco’s renewable power portfolio, they included.

Tenaga, which counts Malaysia’s sovereign wealth fund Khazanah Nasional Bhd as its greatest shareholder, stated the enterprise has been checking out many initiatives to boost shareholder worth, which includes a probable listing of TNB Genco.

On the other hand, Tenaga has not made a “definitive conclusion in relation to these prospective initiatives” and is presently centered on bettering operational performance, the business mentioned in response to a Reuters ask for for comment.

TNB Genco’s IPO prepare arrives as Malaysia’s overall economy grew at its fastest yearly rate in the next quarter, boosted by growth in domestic desire and resilient exports. The economic system has observed strong recovery considering that it reopened its borders in April.

Reporting by Yantoultra Ngui editing by Sumeet Chatterjee, David Goodman and Jason Neely

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