A view of Tenaga Nasional Berhad headquarters in Kuala Lumpur, Malaysia, October 13, 2015. REUTERS/Olivia Harris
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SINGAPORE, Aug 12 (Reuters) – Malaysian electrical energy utility Tenaga Nasional Bhd (TENA.KL) plans to set start the method subsequent yr for a possible $1 billion itemizing of its energy technology enterprise, sources near the matter advised Reuters.
In what can be the nation’s largest preliminary public providing (IPO) in a decade, TNB Energy Technology Sdn Bhd, generally known as TNB Genco, could possibly be valued at about $4 billion, the sources mentioned, declining to be named owing to the confidential nature of the matter.
Proceeds from the providing will probably be used to develop TNB Genco’s renewable power portfolio, they added.
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Tenaga, which counts Malaysia’s sovereign wealth fund Khazanah Nasional Bhd as its greatest shareholder, mentioned the corporate has been exploring varied initiatives to spice up shareholder worth, together with a possible itemizing of TNB Genco.
Nonetheless, Tenaga has not made a “definitive resolution in relation to those potential initiatives” and is at the moment targeted on bettering operational efficiency, the corporate mentioned in response to a Reuters request for remark.
TNB Genco’s IPO plan comes as Malaysia’s economic system grew at its quickest annual tempo within the second quarter, boosted by growth in home demand and resilient exports. The economic system has seen sturdy restoration because it reopened its borders in April.
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Reporting by Yantoultra Ngui; enhancing by Sumeet Chatterjee, David Goodman and Jason Neely
Our Requirements: The Thomson Reuters Trust Principles.
