The return to power of Malaysia's ruling political coalition is set to unleash up to $2.6 billion in initial public offerings over the next six months, as deals that had been put on ice amid months of pre-election uncertainty are revived, bankers said.
The election last week looks set to breathe new life into IPO activity on Bursa Malaysia, which in June last year hosted the $2.2 billion listing of Felda Global Ventures, a Malaysian palm oil company, then the second largest offering of the year after Facebook. In 2012 only the U.S., China and Japan, saw more capital raised in IPOs than Malaysia.
Bankers say at least six companies are preparing to file for a listing on Bursa. The first is likely to be Westports, which operates container facilities at Port Klang, in the Straits of Malacca. The company has said it expects container volume to grow 7-8 percent annually for the next five years.
Much of such traffic is likely to be driven by increasing trade flows within the Association of Southeast Asian Nations (Asean), as companies in the most advanced countries of the 10-member bloc, which includes Malaysia and Indonesia, build supply chains to support regional business.
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The planned Westports IPO, being arranged by Goldman Sachs, Credit Suisse and Maybank, could be valued at up to $500 million and is set for the third quarter, one banker said.