Khazanah to offer 1.8b new shares in US$2b healthcare IPO, says source

MI KUALA LUMPUR, June 1 — Malaysia’s state investor Khazanah Nasional Bhd plans to offer up to 1.8 billion new shares in the listing of its healthcare unit, according to a source with direct knowledge of the matter, in a move that could raise close to US$2 billion (RM6 billion). The dual listing, slated to debut in Malaysian and Singapore bourses by the end of July, comes at a time when many initial public offerings (IPOs) are being postponed due to worries about a deteriorating global economy. “The other shareholders are planning to offer their shares for sale,” the source added, declining to elaborate further as the matter is private. Khazanah officials were not immediately available for comment. Japan’s Mitsui & Co Ltd owns a 26.6 per cent stake in IHH, Dubai-based Abraaj Capital holds 7.1 per cent and Acibadem chief Mehmet Ali Aydinlar 4.2 per cent. Khazanah owns the remaining 62.1 per cent. IHH Healthcare Bhd, the healthcare unit of Khazanah, owns stakes in Turkish hospital group Acibadem AS, Singapore’s Parkway Holdings, India’s Apollo Hospitals Enterprise Ltd and Malaysia-based Pantai Hospitals and International Medical University. IHH started offering its IPO shares to indigenous “Bumiputra” investors at an indicative price of RM2.85 a share, according to the source. An official at joint lead-coordinator CIMB declined to comment. Bumiputra, meaning “sons of the soil” in the Malay language, refers to majority ethnic Malays and other indigenous people in the country who benefit from a decades-old affirmative action policy that favours them in housing, education and business. Some 360 million “Bumiputra” shares are being offered to wealthy investors, according to Malaysia’s Ministry of International Trade and Industry’s website, adding that the closing date to apply for the tranche is June 5. Bank of America Merrill Lynch and Deutsche Bank are also joint lead co-ordinators, while Credit Suisse, DBS, Goldman Sachs and Maybank are joint bookrunners. Nomura, OCBC and UBS are co-lead managers. The dual listing would be the fourth-biggest IPO in Singapore’s history and Malaysia’s second-largest this year after the planned listing of Malaysian plantation group Felda Global Venture Holdings. International Financial Corp (IFC), a member of the World Bank Group, has said it plans to take part in the IHH’s listing in a move to help validate IHH’s emerging markets strategy. —Reuters

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