INDEPENDENT
power producer (IPP) Edra Power Holdings Sdn Bhd is expected to list on the
Main Market of Bursa Malaysia in November.
Sources
said the company, which is the second-largest IPP in Malaysia, was expected to
raise more than RM5 billion from the listing exercise.
Analysts
said "Edra Power will be a cherry on the cake for Malaysia's economic
rebound story" since the proposed listing came amid positive economic
indicators, including robust growth and exports and a stronger ringgit.
The
World Bank revised Malaysia's economic growth forecast to 4.9 per cent this
year from 4.4 per cent previously, much higher than the government's estimates
due to a stellar first-quarter performance.
Also
contributing to the positive sentiment is the ringgit, the strongest major
Asian currency in the first quarter.
This
was due to the strong inflow of foreign funds to the stock market, which staged
a two-year high closing above 1,787 points early last month, as well as due to
positive corporate earnings.
Analysts
said market consensus was that the run-up on Bursa Malaysia bode well for Edra
Power's listing price which, although had not been fixed, would make the
initial public offering (IPO) pipeline come alive again.
This
is in view that Edra Power will a "blockbuster" IPO with cornerstone
fund managers, such as the Employees Provident Fund, Retirement Fund Inc,
Tabung Haji and Khazanah Nasional Bhd.
"It
will be a much sought-after flagship listing, which will also attract retail
investors," said an analyst.
He
said China General Nuclear Power Corp (CGN), which wholly-owns Edra Power,
might release about 35 to 40 per cent of its shares into 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. 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 Power has connections with local and
international utility companies.
As
a leading global nuclear energy company, CGN 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.
Since
CGN took over Edra Power last year, it has grown its investments in Malaysia.
For instance, the company is on track to build a pilot large-scale solar
photovoltaic plant, which has a generating capacity of 50 megawatts (MW), in
Kedah by early next year.
Known
as Kedah Solar Project, it will turn Kuala Ketil into an industrial site which
produces renewable energy, thus creating a positive impact on the state's
economic growth.
Edra
Power will also develop Malaysia's largest combined cycle gas turbine (CCGT)
power plant in Alor Gajah, Melaka, which has a capacity of 2,242MW. The plant
will deliver the most cost-effective conversion of fuel to electricity.
"It
will be exciting times again for investors wanting to be part of high growth
which Edra Power can offer through its public listing," said the analyst.
