Malaysia's 1MDB plans huge IPO of power assets

July 04, 2014 16:21
Malaysian state investment firm 1MDB plans to unlock the value of its power assets through a large IPO this year.  Representative picture: Bloomberg

Malaysian state investment fund 1MDB has unveiled plans to list its power generation assets through an initial public offering (IPO) that could raise up to US$3 billion, Financial Times reported.

The deal, which will take place in the fourth quarter, will mark the biggest move by 1MDB in any sector since the fund was founded five years ago, the paper said.

Deutsche Bank, Goldman Sachs and two local banks -- Maybank and AmBank -- are said to have been appointed as advisers for the IPO.

1MDB was established in 2009 by Prime Minister Najib Razak "to drive strategic initiatives for long-term sustainable economic development and promote inflow of [foreign investment] into the country".

However, its role has been questioned by some opposition lawmakers as the country already had a long-established strategic investment fund, Khazanah Nasional Bhd.

1MDB owns 16 power and desalination plants in six countries, with a net power generation capacity of 5,570 MW, according to the report.

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