IN NAJIB’S HAND NO ONE WANTS: BUT NOW UNDER CHINA, EDRA’S RM5BIL IPO TO FINALLY SEE LIGHT OF DAY IN NOVEMBER

CHINA-OWNED power producer, Edra Power Holdings Sdn Bhd (formerly known as Edra Global Energy Bhd) is expected to be listed on the Main Board of Bursa Malaysia in November, Bernama reported today.

Quoting capital market industry sources, the national news agency said the IPO is expected to raise in excess of RM5 billion.

Edra, formerly owned by 1Malaysia Development Bhd (1MDB), is the second largest independent power producer in Malaysia and a leading nuclear energy company globally.

1MDB sold Edra to China General Nuclear Power Corp (CGN) for RM9.83 billion cash in November 2015 as part of 1MDB’s rationalisation plan to reduce its RM42 billion debt.
1MDB is said to have acquired Edra for RM12 billion in 2012.

“Edra will be a cherry on Malaysia’s economic rebound story” as its  proposed listing comes amid positive economic indicators including robust growth and exports and a strong ringgit, analysts told Bernama.

A stellar first-quarter performance has led the World Bank to revise Malaysia’s rate of growth this year from 4.4% to 4.9%, a much higher estimate than the government’s.

Also contributing to the positive sentiment is the emergence of the ringgit as the strongest major Asian currency.

This was due to the strong inflow of foreign funds to the stock market, which staged a a two-year high, closing above 1,787 points early this month, as well as positive corporate earnings.

Analysts said CGN, which wholly-owns Edra, may release 35-40% of its shares in the market in the listing exercise.

Edra has wind, solar, hydro, gas-fired, efficient coal-fired and fuel-cell powered projects in China, South Korea, Singapore, the United Kingdom, France and Australia.

After CGN took over Edra last year, the company is on track to build its pilot large-scale solar photovoltaic plant in Kedah by early 2018, with a generating capacity of 50 megawatts (MW).

Known as Project Kedah Solar, it will turn the once agricultural land in Kuala Ketil into an industrial site producing renewable energy, thus creating a significant positive impact on the state’s economic growth.

It will also develop Malaysia’s largest combined cycle gas turbine (CCGT) power plant in Alor Gajah in Melaka with 2,242MW.

– https://www.themalaysianinsight.com

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