KUALA LUMPUR, July 4 (Bernama) -- Ranhill Energy and Resources Bhd, which is enroute to a listing on the main board of Bursa Malaysia on July 31, aims to raise up to RM750 million from its initial public offering (IPO).
Its president/chief executive Tan Sri Hamdan Mohamad said over 60 per cent of the proceeds would be utilised to redeem the company's debt, and 27 per cent to expand its presence in China's water and waste water sector.
"In the last eight years, we have expanded our water business in Thailand and China. We operate a total of 360 million litres of water per day (MLD) waste water treatment plant, out of which 90 MLD is in Thailand and 270 in China.
"We intend to expand another 400 MLD in the next couple of years," he told reporters after the launching of the company's prospectus today.
According to Ranhill Energy's prospectus, the flotation exercise involves the issue of 407 million shares at an indicative price of RM1.85.
It comprises an offer for sale up to 77 million existing shares and a public issue of 330 million new shares.
The company is also making an institutional offering of up to 328.72 shares at a price to be determined by way of bookbuilding while the retail offering consists of 78.27 million shares.
There will also be a greenshoe option for a total of 36.5 million shares.
The cornerstone investors -- Lembaga Tabung Haji, Eastspring Investments Bhd, Hwang Investment Management Bhd and Corston Smith Asset Management Sdn Bhd will acquire an aggregate of 118.3 million shares at RM1.85 apiece.
Maybank Investment Bank is the principal adviser for the IPO.
CIMB Investment Bank and Maybank Investment Bank are the joint global coordinators, joint bookrunners, joint managing underwriters and joint underwriters for the exercise.
SRH SRH NN