CGN said to weigh IPO of Malaysian elec­tric­ity firm

List­ing of the busi­ness on the Kuala Lumpur stock ex­change could raise $400 mil­lion


China Gen­eral Nu­clear Power Corp, which bought em­bat­tled state fund 1Malaysia De­vel­op­ment Bhd’s power as­sets for $2.3 bil­lion this year, is con­sid­er­ing list­ing the busi­ness as early as 2017, peo­ple with knowl­edge of the mat­ter said.

The State-owned com­pany could raise as much as $400 mil­lion from a Malaysian ini­tial public of­fer­ing of Edra Global En­ergy Bhd, said the peo­ple, who asked not to be iden­ti­fied as the de­tails are pri­vate.

Edra Global, based in Kuala Lumpur, is the sec­ond big­gest in­de­pen­dent power pro­ducer in­Malaysia, trail­ing only Malakoff Corp. It has 13 elec­tric­ity projects with a to­tal in­stalled ca­pac­ity of 6,620 megawatts across Malaysia, Egypt, Bangladesh, the United Arab Emi­rates and Pak­istan, ac­cord­ing to CGN’s web­site. A rep­re­sen­ta­tive for CGN didn’t im­me­di­ately re­spond to an email seek­ing com­ment.

An Edra Global of­fer­ing could help pro­vide a boost to the Malaysian eq­uity mar­ket af­ter first-time share sales raised just $270 mil­lion this year, the low­est level for any com­pa­ra­ble pe­riod since 2009, data compiled by Bloomberg show. The South­east Asian na­tion fore­casts its econ­omy will ex­pand as much as 5 per­cent in 2017, com­pared with 4 per­cent to 4.5 per­cent this year.

Malaysian de­vel­oper Eco World In­ter­na­tional Bhd said last week it plans to seek more than 2 bil­lion ring­git ($476 mil­lion) in a do­mes­tic IPO. QSR Brands Bhd, which op­er­ates KFC and Pizza Hut restau­rants in South­east Asia, is seek­ing bank pitches for a first-time share sale that could raise about $400 mil­lion, peo­ple with knowl­edge of the mat­ter said last month.

Plans for the list­ing of Edra Global are pre­lim­i­nary and de­tails could change, the peo­ple said.

CGNa­greed last year to pay 9.83 bil­lion ring­git to buy Edra Global from 1MDB, the Malaysian in­vest­ment fund that is at the cen­ter of sev­eral in­ter­na­tional in­ves­ti­ga­tions into al­leged cor­rup­tion and money laun­der­ing. The trans­ac­tion was com­pleted ear­lier this year.

the amount of cap­i­tal China Gen­eral Nu­clear Power Corp could raise from a Malaysian IPO of Edra Global En­ergy Bhd


A con­struc­tion worker talks on the phone in front of a 1Malaysia De­vel­op­ment Ber­had bill­board at the Tun Razak Ex­change de­vel­op­ment in Kuala Lumpur, Malaysia.

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