Operator of Malaysia's busiest port plans $500 mln IPO in 2013
Westports Malaysia Sdn Bhd, operator of the country's busiest port, is looking to raise as much as $500 million in an initial public offering in the second quarter of 2013, two sources with direct knowledge of the plan said, Reuters reports.
The funds raised from the IPO will help Westports expand Port Klang, which has reported double-digit growth in container handling over the last five years.
Westports, which counts Hutchison Port Holdings and Malaysia's state investor Khazanah Nasional Bhd as shareholders, is launching an IPO at a time when privatisation schemes and economic growth have cemented the country's position as Asia's top destination for initial share sales.
"Although the roles of bankers are not confirmed yet, Malayan Banking Bhd will likely lead the deal," said one of the sources on Wednesday, declining to be identified as the matter was still private.
Credit Suisse Group AG and Goldman Sachs Group Inc will also help arrange the sale, said the second source.
Westports officials were not immediately available to comment.
The IPO would follow the planned $1 billion offering for independent power producer Malakoff Corp Bhd, 51 percent-owned by MMC Corp Bhd, in the first quarter of next year.
The founders of Malaysia's AirAsia Bhd, Tony Fernandes and Kamarudin Meranun, are also set to kick off an IPO spree in 2013 with three listings worth more than $500 million.
Malaysia accounted for $7.9 billion of the $30.03 billion worth of new listings in the Asia-Pacific region this year, according to Thomson Reuters data.
By comparison, IPOs in Hong Kong have raised $1.81 billion and those in Singapore $3.44 billion.
Headed by G. Gnanalingam, Malaysia's 24th-richest man according to Forbes, Westports helped move Port Klang a notch higher to the 13th spot in the world port traffic league last year, according to the Westports website.
The port, located on the Straits of Malacca and 38 kilometres southwest of Kuala Lumpur, has been recording 20 percent growth in TEU (twenty-foot equivalent container units) over the last five years.
