In a filing yesterday, MMC said the proposed IPO would be conditional upon the completion of a pre-IPO exercise.

It said that the applications to the relevant authorities in relation to the proposals for the exercises were expected to be made within one month.

“The proposed IPO will enable the Malakoff group to have greater financial flexibility to optimise its capital structure and cost of capital in pursuit of growth opportunities,” MMC said. .

Proceeds from the listing exercise will boost MMC’s shareholders’ funds and enable the company to repay part of its borrowings.

“The initial price per issue share to be fully paid by the retail investors upon application pursuant to the retail offering will be determined prior to the launch of the listing prospectus,” MMC said.

It added that the final retail price would be determined after the institutional price had been fixed by the directors of Malakoff and the selling shareholders on a date to be determined later.

“The gross proceeds will accrue entirely to Malakoff and are expected to be utilised for the redemption of its financing facilities, expansion of business, working capital and other general corporate purposes, as well as payment for the estimated fees and expenses to be incurred in relation to the proposals,” it said.

MMC said the IPO would enable Malakoff to have greater financial flexibility to optimise its capital structure and cost of capital in pursuit of growth opportunities.

“Malakoff aims to increase total effective power generation capacity to 10,000MW by 2020 and further diversify its assets portfolio by building a renewable power generation portfolio, both domestically and internationally, to contribute up to 15% to its overall profit,” MMC added

Malakoff is 51% owned subsidiary of MMC, whose total cost of investment in the company is about RM2.05bil.