Ranhill to Return Funds After $234 Million Malaysia IPO ScrappedSanat Vallikappen
Ranhill Energy and Resources Bhd., a Malaysian energy and water company, scrapped its 753 million ringgit ($234 million) initial public offering less than a week before the stock was slated to debut in Kuala Lumpur.
All funds collected from investors will be returned, Ranhill said today in a statement. The company was ordered yesterday by Malaysia’s Securities Commission to postpone the listing after an affiliate got a suspension notice from state-owned Petroliam Nasional Bhd.
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 on July 24. 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.
Petronas lifted the suspension on the Ranhill affiliate or groups connected to it for upstream activities, Ranhill said in the statement today. The suspension on downstream activities still applies to any companies or shareholders linked to the Ranhill affiliate.
The stock was due to debut July 31. The decision to scrap the IPO was made after consulting with its adviser Maybank Investment Bank Bhd. and joint global coordinators Maybank and CIMB Investment Bank Bhd., Ranhill said today.