7-Eleven Malaysia readies for IPO

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Intan set to expand 7-Eleven chain7-Eleven Malaysia Holdings Bhd. said on May 8 that it has started taking orders for its planned $225 million initial public offering, set to be the country’s biggest market debut so far this year.

The offering would be a shot in the arm for the Malaysian equities market, which has recently faced an IPO drought. The convenience-store operator aims to list on Bursa Malaysia on May 30 and, if successful, would be the country’s largest IPO in nearly seven months after offshore service provider UMW Oil & Gas Corp. raised $740 million in 2013.

Controlled by tycoon Vincent Tan, 7-Eleven Malaysia said it has already secured commitments from eight investors who have agreed to take up more than two-thirds of the IPO, despite the lackluster market. The investors include AIA Group, UOB Asset Management Malaysia, Macquarie Funds Management, York Capital Management, Albizia Asean Opportunities Fund, Matthews International Capital Management, Genesis Investment Management and Capital Research & Management.

Cornerstone investors generally come in ahead of the company’s IPO launch, which helps other investors to build their appetite for the company’s shares.

According to data tracker Dealogic, new listings in Malaysia have raised only $9 million so far this year compared with $243 million in the same period last year. In 2013, IPOs in the country raised $2.6 billion, which also pales in comparison with some $12 billion raised in 2012. The country’s benchmark index, the FTSE Bursa Malaysia KLCI, is up just 0.2% so far this year.

7-Eleven Malaysia’s IPO had been originally planned for late 2013, but was delayed due to weak markets. However, a successful listing of 7-Eleven Malaysia could boost investor appetite ahead of other deals in the pipeline. Among them is a $1.5 billion offering by 1Malaysia Development Bhd. that could come to the market in the second half of this year.

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Reading Time: 1 minute

7-Eleven Malaysia Holdings Bhd. said on May 8 that it has started taking orders for its planned $225 million initial public offering, set to be the country’s biggest market debut so far this year.

Reading Time: 1 minute

Intan set to expand 7-Eleven chain7-Eleven Malaysia Holdings Bhd. said on May 8 that it has started taking orders for its planned $225 million initial public offering, set to be the country’s biggest market debut so far this year.

The offering would be a shot in the arm for the Malaysian equities market, which has recently faced an IPO drought. The convenience-store operator aims to list on Bursa Malaysia on May 30 and, if successful, would be the country’s largest IPO in nearly seven months after offshore service provider UMW Oil & Gas Corp. raised $740 million in 2013.

Controlled by tycoon Vincent Tan, 7-Eleven Malaysia said it has already secured commitments from eight investors who have agreed to take up more than two-thirds of the IPO, despite the lackluster market. The investors include AIA Group, UOB Asset Management Malaysia, Macquarie Funds Management, York Capital Management, Albizia Asean Opportunities Fund, Matthews International Capital Management, Genesis Investment Management and Capital Research & Management.

Cornerstone investors generally come in ahead of the company’s IPO launch, which helps other investors to build their appetite for the company’s shares.

According to data tracker Dealogic, new listings in Malaysia have raised only $9 million so far this year compared with $243 million in the same period last year. In 2013, IPOs in the country raised $2.6 billion, which also pales in comparison with some $12 billion raised in 2012. The country’s benchmark index, the FTSE Bursa Malaysia KLCI, is up just 0.2% so far this year.

7-Eleven Malaysia’s IPO had been originally planned for late 2013, but was delayed due to weak markets. However, a successful listing of 7-Eleven Malaysia could boost investor appetite ahead of other deals in the pipeline. Among them is a $1.5 billion offering by 1Malaysia Development Bhd. that could come to the market in the second half of this year.

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