Edra listing expected to raise in excess of RM5bil

KUALA LUMPUR: Independent power producer (IPP), Edra Power Holdings Sdn Bhd, is expected to be listed on the Main Board of Bursa Malaysia in November.

Capital market industry sources said the company, which is the second largest IPP in Malaysia and a leading nuclear energy company globally, was expected to raise in excess of RM5bil from its listing exercise this year.

Analysts said Edra would be a cherry on Malaysias economic rebound story since the proposed listing came amid positive economic indicators including robust growth and exports and a strong ringgit.

Standing out was the World Banks revision of the country’s 2017 growth to 4.9% from 4.4% previously, much higher than the government’s own estimates due to a stellar first-quarter performance.

Also contributing to the positive sentiment was the ringgit, which was being touted as the strongest major Asian currency.

This was due to the strong inflow of foreign funds to the stock market, which staged a a two-year high, closing above 1,787 points in early June, as well as due to positive corporate earnings.

Against such a backdrop, the analysts said market consensus was that the run-up on Bursa Malaysia bode well for Edra’s listing price, which although has not been fixed, would make the initial public offering (IPO) pipeline come alive again.

This is in view that Edra would a blockbuster IPO with cornerstone fund managers such as the Employees Provident Fund, Retirement Fund Inc, Tabung Haji and Khazanah Nasional Bhd being hungry now given the pent-up demand for new listings.

It would be a much sought-after flagship listing which would also attract retail investors to be involved as shareholders in the company, an analyst said.

He pointed out that China General Nuclear Power Corp, which wholly-owns Edra, might release about 35%-40% of its shares in the market as part of the listing exercise.