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Ranhill IPO Probed by Regulator as Malaysia Listing Deferred

Petronas, as Malaysia’s national energy company is better known, manages rights to all of the Southeast Asian nation's oil and gas reserves and appoints outside contractors for specific projects. Photographer: Goh Seng Chong/Bloomberg
Petronas, as Malaysia’s national energy company is better known, manages rights to all of the Southeast Asian nation's oil and gas reserves and appoints outside contractors for specific projects. Photographer: Goh Seng Chong/Bloomberg

July 25 (Bloomberg) -- Malaysia’s Securities Commission is reviewing Ranhill Energy and Resources Bhd.’s 753 million ringgit ($235 million) initial public offering and investors who subscribed may be offered their money back.

The regulator ordered the Kuala Lumpur-based energy and water group and its adviser Maybank Investment Bank Bhd. to postpone the listing slated for next week after an affiliate got a suspension notice from state-owned Petroliam Nasional Bhd. Proceeds from the share sale are being safeguarded by two banks and the Malaysian Issuing House Sdn., Ranhill Energy said in a statement yesterday.

Petronas, as Petroliam Nasional is better known, manages rights to Malaysia’s oil and gas reserves and appoints outside contractors for specific projects. Without a license, companies can’t bid for jobs, the Edge Financial Daily reported yesterday, without citing its source. Ranhill Energy relies on such work for a “significant” portion of its oil and gas revenue, the company said in the statement.

The “deferment will continue until all necessary steps have been taken to ensure that relevant disclosures are made to enable informed decisions and, if necessary, that IPO applicants are given the opportunity to decide whether or not to continue investing in the company,” the Securities Commission said in a separate e-mailed statement to Bloomberg News today.

Allotment Deferred

Petronas suspended Perunding Ranhill Worley Sdn., a company 90 percent-owned by Ranhill Energy’s Chief Executive Officer Hamdan Mohamad, after a review of its construction work on a project in Malaysia’s southern state of Malacca, according to a stock exchange filing yesterday. This firm has an exclusive arrangement to appoint Ranhill WorleyParsons Sdn. for projects won in the nation, it said. Ranhill WorleyParsons is jointly owned by Ranhill Energy and WorleyParsons Ltd., Australia’s biggest oil and gas engineering company.

The permit has since been restored after reaching a resolution with Petronas, WorleyParsons said in a separate statement today.

The temporary suspension came a week after Ranhill Energy completed its IPO. The allotment of shares to successful applicants has also been deferred, Ranhill Energy said. The stock was due to debut July 31.

“Ranhill remains committed to ensuring that the interests of all stakeholders of the Ranhill group of companies, including investors in the IPO, remain safeguarded at all times,” the company said. Ranhill has appealed the suspension and is awaiting a response, it said.

WorleyParsons, which picked Malaysia as its second global hub after Houston, fell to close 0.5 percent lower at A$21.87 in Sydney today. The benchmark index was little changed.

Ranhill Energy, which also manages water concessions and power plants, was betting on its decade-long partnership with WorleyParsons to win more energy deals, Hamdan said in an interview on July 8 ahead of the share sale.

To contact the reporter on this story: Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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