Malaysia: Edra listing in November expected to raise in excess of RM5b

Malaysia: Edra listing in November expected to raise in excess of RM5b

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

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 RM5 billion from its listing exercise.

Analysts said "Edra will be a cherry on Malaysia's 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 Bank's revision of the country's 2017 growth to
4.9 per cent from 4.4 per cent 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 easily 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 boded 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 will 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 said that China General Nuclear Power Corp (CGN), which wholly-owns Edra,
might release about 35-40 per cent of its shares in the market as part of
the listing exercise.

"They are looking at returning ownership of the company to Malaysians which
is a natural evolution in the capital market," the analyst said.

"Malaysians will take the first bite in what is surely an internationally
renowned company in clean energy," he said.

Malaysians would have much to gain as Edra has linkages with local and
international utility companies.

As a leading global nuclear energy company, it has investments of more than
25 gigawatts in clean and renewable energy projects.

The projects include wind, solar, hydro, gas-fired, efficient coal fired and
fuel-cell powered projects in China, South Korea, Singapore, the United
Kingdom, France and Australia.

And since CGN took over Edra last year, it has brought an era of growth for
its investments in Malaysia.

For instance, the company is on track to build its pilot large-scale solar
photovoltaic plant in Kedah by early 2018, with a generating capacity of 50
megawatts (MW).

Known as Project Kedah Solar, it would turn the once agricultural land in
Kuala Ketil into an industrial site producing renewable energy, thus
creating a significant positive impact on the state's economic growth.

It would also develop Malaysia's largest combined cycle gas turbine (CCGT)
power plant in Alor Gajah in Melaka with 2,242 MW.

When completed, the project, which would deliver the most cost-effective
conversion of fuel to electricity, would be Malaysia's largest CCGT plant.

"It would be exciting times again for investors wanting to be part of high
growth which Edra can offer even to retail players through its public
listing,' the analyst said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.themalaymailonline.com/money/article/edra-listing-in-november-exp
ected-to-raise-in-excess-of-rm5b

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com