Ranhill to raise RM637.5 million from IPO

PETALING JAYA: Ranhill Holdings Bhd is planning to raise up to RM637.5 million from its initial public offering (IPO) slated for Feb 18, 2016, following the completion of the reverse takeover of Symphony House Bhd by Ranhill.
Ranhill, which is now a environment, energy and power generation business, has priced its shares at RM1.70 apiece.
The floatation exercise will involve the sale of up to 475 million shares representing about 50.5% of the enlarged issued and paid-up share capital of the company. This is made up of an offer for sale of up to 100 million existing units and a public issue of up to 375 million new shares.
Ranhill said up to RM170 million will go to the selling shareholder of Ranhill Energy, Cheval Infrastructure Fund LP, while the remaining RM637.5 million will go towards repaying its borrowings, the acquisition of Ranhill Water Technologies (Cayman) Ltd (RWT Cayman), expansion of its water business in China and for working capital purposes.
Ranhill said about 172.56 million shares of its 354.18 million shares offering for Malaysian institutions and selected investors, have been taken up by three cornerstone investors, namely Corston-Smith Asset Management Sdn Bhd, Lembaga Tabung Haji, and Permodalan Darul Ta’zim Sdn Bhd.
The retail offering which involves 120.82 million issue shares includes a restricted offering of 65.99 million shares to eligible existing shareholders of Ranhill who were previously the shareholders of Symphony and 36 million issue shares reserved for application by eligible directors and employees, as well as persons who have contributed to the success of Ranhill and its subsidiaries.
A total of 18.82 million issue shares will also be made available for application by the Malaysian public.
Through its environment business, via subsidiary SAJ Holdings Sdn Bhd, is the exclusive water operator for the entire State of Johor, the country’s second most populous state.
The business also extends to the operation of water and wastewater treatment plants, non-revenue water reduction and specialised services in the management and optimisation of water utility assets.
In addition, Ranhill has water and wastewater concessions in China and Thailand, with total combined design capacity of more than 400 MLD. In China, Ranhill currently operates ten (10) water, industrial wastewater and water recycling plants in the provinces of Henan, Anhui, Jiangxi and Liaoning.
Meanwhile, via its power generation business, Ranhill is one of the largest independent power producers in Sabah, and is involved in the provision of operations and maintenance services for power plants, as well as provision of support services.
In a separate statement, Ranhill president and chief executive Tan Sri Hamdan Mohamad said there is good opportunity to tap into alternative energy sources such as solar, wind and geothermal to add to the country’s gas plants, in Sabah and parts of Asean, creating a possible niche for Ranhill in the green and renewable energy sector.