Kuala Lumpur. Ekovest Berhad, Malaysia's construction and property developer, plans to list its highway operating subsidiary in 2018 in an initial public offering that could raise at least $500 million, a top executive said on Wednesday (09/11).
There has been a dearth of IPOs in Malaysia in recent years as its currency took a hit from the sustained volatility in global commodity markets. However, a few offerings could be launched the next year or so.
Property developer Eco World Development Group's international unit will list in the first quarter of next year with an aim to raise nearly $500 million.
The listing of Ekovest's Konsortium Lebuhraya Utara-Timur unit is part of a plan to strengthen its asset portfolio and financials, managing director Lim Keng Cheng told Reuters.
The Wall Street Journal first reported the IPO earlier on Wednesday.
Ekovest on Tuesday sold 40 percent stake in the highway unit to Malaysian pension fund Employees Provident Fund (EPF) for 1.13 billion ringgit ($267.52 million).
Cheng said Ekovest and EPF have yet to determine how much equity stakes both intend to hold in the subsidiary, post the IPO.
He added that Ekovest will look for "strong and suitable strategic investors who can add value and complement our business model" for the exercise.
Ekovest, controlled by Malaysian real estate tycoon Lim Kang Hoo, has yet to engage bankers for the IPO.