: Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: 1MDB IPO
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5
Malaysia's 1MDB to raise US$3b in IPO
04 Jul 2014 13:01
KUALA LUMPUR: Sovereign wealth fund 1Malaysia Development Bhd has said it plans to raise more than $3 billion by listing its energy assets, in what would be the country's second biggest initial public offering (IPO).

The state-backed investor said Thursday it had "commenced activities" to list on Bursa Malaysia in the fourth quarter of the year.

The proceeds from the offering will go towards funding future growth and parts of the company's outstanding debt, 1MDB said.

But analysts have cast doubt on the long-term prospects of the stock, pointing to uncertainty over its ability to service its high debt, which stood at $37 billion ($11.6 billion) by the end of March 2013.

However, 1MDB says its debts are backed by operational assets "with healthy cash flows and strong growth potential".

Ooi Chin Hock, a dealer with Malaysia's M&A Securities, on Friday told AFP: "This IPO is of national interest so definitely the government will want to make it a success."

The fund owns 16 power and desalination plants in Malaysia, Egypt, Sri Lanka, Bangladesh, Pakistan and the United Arab Emirates.

Germany's Deutsche Bank and Malaysia's Maybank have been appointed as 1MDB's joint global coordinators for the IPO, while Goldman Sachs is the advisor, the company said.

Malaysia, Southeast Asia's third-largest economy, has seen a flurry of big listings in the past two years.

Palm oil giant Felda Global Ventures raised a record $3.25 billion in 2012, helping the country's stock market the world's fifth-largest for IPOs that year.

Another palm oil giant, IOI Corp, raised $570 million by spinning off its property business and listing it in January.
- AFP/nd
(never missed any payment schedule yet 2nd time 6-mth extension of bridging loan ^^)
As per my previous post in another thread, Najib may not be the dumb one

(03-06-2014, 12:57 PM)specuvestor Wrote: [ -> ]Depends on how u look at it. When I first heard of this fund years back, the understanding is that it is implied guaranteed like the US GSEs, but we were guessing that it could go bust and there is no actual recourse. Article says 14% so roughly $2b?

Probably the fund is also used to fund crony projects but from a structure point of view Najib may not be the one that is dumb.
Still nothing wrong? What is your say?

3 CEOs, 3 auditors, 2 chairmen in 5 years, and still nothing’s wrong at 1MDB?

KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) has the distinction of being possibly the only government-linked company (GLC) to have changed three chief executive officers (CEOs), three external auditors, and two chairmen all in a span of only five years.

While both the government and 1MDB via its chairman Tan Sri Lodin Wok Kamaruddin insist that there is nothing amiss at the strategic investment fund, this merry-go-round of its top brass and auditors should be a red flag.

The departure of Mohd Hazem Abdul Rahman who replaced its first CEO Datuk Shahrol Halmi in March 2013, raises more alarm bells.

“A third CEO in five years, three accountants in five years, debts of more than RM40 billion … I’m only concerned [as to] who will bear responsibility if and when something goes wrong?” a veteran corporate player asks.
more bad news...

Malaysia's 1MDB missed US$563 mln loan payment due end-Dec: sources
6 Jan 4:52 PM
[KUALA LUMPUR] Malaysian state investor 1Malaysia Development Bhd missed the repayment of a RM2 billion (US$563 million) bridge loan that was due end-December, two people close to the matter said on Tuesday...
The recent media war on 1MDB, has brought real damage to 1MDB. Other options, besides IPO, will greatly reduce the valuation of the asset. Disposing of the asset is a must for 1MDB, due to cash flow requirement. An rare opportunity for bargain hunter?

Malaysian state fund 1MDB may scrap US$3 billion power IPO: sources

KUALA LUMPUR (June 9): Malaysian state investment fund 1MDB is likely to abort plans for a US$3 billion ($4 billion) IPO of its power unit and focus on an outright sale of its energy assets, three people with direct knowledge of the deal said on Tuesday.

The gloom surrounding the Malaysian economy may limit appetite for an IPO for Edra Global Energy, which could have been Southeast Asia's fifth-biggest, and several foreign firms have expressed interest in a direct purchase of the assets.
I wonder anybody seen this letter before this was circa 1997 during afc when PM msia blamed soros for shorting the ringgit the reply from soros was of course banned from appearing in our news publication due to sensitivities at that time.


Adapted from Bangkok Post

I have always said Dr Mahathir is a menace to his own people. Now only you can see the effects of his foolishness when the ringgit has halved its value overnight and your economy goes kaput. Single handedly you have caused hardship to millions of your own people. You have built useless mega projects at tremendous cost to the country.

The telecoms tower in Kuala Lumpur and the highest building in the world show how stupid you are. Not only does it cause massive traffic jam, it has totally no purpose.If you need high ground for telecoms antennae a nearby mountain is there for free.

This tower has no purpose from the ground up to 300 metres. The satelites make this totally unneccesary. A fool and his money are soon parted. The only thing is you are the fool and the money belongs to Malaysians. You make 20% in every project, you have real estate in Japan and billions of shares corruptly acquired.

Your 3 sons are worth 8 billion US$. Where do they get this money? Of course, corruption.

You are known as the Marcos of Malaysia, having enriched yourself to the tune of billions.

You dare to shed crocodile tears during UMNO delegates meeting about the ills of corruption.

Yet you are the most corrupt of all the prime ministers before you. A thief is crying thief and hopes people look the other way. Who dares to say anything when the chief is caught with his hands in the candy jar?

You said wisdom is not the monopoly of the West. So is foolishness. You have more foolishness than most people would believe. Billions are used to build two high rise Petronas buildings that benefit nobody. They now stand tall, a symbol of stupidity and irresponsibility. Instead they just add on to traffic jams. What is this reclamation of 10 islands off Kedah? Totally absurd and stupid. Of course your benefit is 20%. And the bridge across from Malacca to Sumatra across international waters?

Why not build a bridge to the moon? I am sure you still can get your 20%. You called me a Moron. How can a Moron make so much money. By allowing short selling and borrowing millions of shares from your banks we fund managers made millions out of your inexperience and poor regulations.

You lose all Malaysians' money, therefore you are the Moron. Now you know too late and start crying over spilt milk.

In Australia you are known as the recalcitrant ego maniac; in UKthe corrupt custard because of your stupid purchase of our movie studio and the 290 million ringgit Lotus racing car plant and the shady Pergau dam loans from the UK. They are useless to us and you still want to buy them.

What about buying British reject submarines through your agent, of course. The agent/ broker is designed to make millions out of the Malaysian government..
Your purchase of our battleships is at least 50% more than others are paying. Your purchase of 9 hospitals from UK lock, stock and barrel does not support your local architects or your industry and the British send you obsolete medical equipment. The design is atrocious, one end to the other is half a kilometer and there is no CT-scan, an absolute necessity.

In the UK your face appears in no less than 17 newspapers as a corrupt dictator. In Malaysia you are known as the (IBM) International Big Mouth. In Japan they call you the 'smallest one' (brain size). In Pacific islands, the Santa Claus (giving advice left and right). In south America they call you the parrot (he talks a lot but does not know what it is about). In Manila the living Marcos.

In Malaysia they are spending millions to lure tourists and you talk rubbish scaring every foreigner away. When he is dumb he is doubted a fool, when he opens his mouth it removes all doubt."

While I agree the West does not have the monopoly to wisdom, your actions are not the wisest either. Your EAEC has totally no support even in Asean. Your South-South dialogue meets with the same fate and what is this I hear of the Bridge from Peninsula Malaysia to Sumatra covering 20 miles across International shipping lane?
How crazy can one get? Even the Japanese don't have the money. This world's stupidity seems to be concentrated in one man's mind - yours.

The multimedia super corridor - MSC -. Well in USA its Most Stupid Concept because we Americans, would have thought of it light years before. Even if it makes money, we can copy this concept can't we?

Why do you want to spend your hard-earned money doing questionable projects? It will be like the Bakun project. Abandoned fund wasted and another white elephant. I always say politicians should not be involved in business. Your ministers are also businessmen and almost every official is enriching himself. Look at Rafidah Aziz, selling thousands of Approved Permits (APs) for cars each worth 20-30 thousand Malaysian dollars. Why not your government sell them and make the money? She has acquired millions of shares meant for bumis for free before she agrees to list them.

Look at your Selangor Chief Minister collecting millions for approving high rise buildings from businessman. He is worth a few billions. Unfortunately he was caught with a few million pocket money in Australia. Every Chief minister is awarding useless projects to his cronies then collecting secret pay offs on the side.
Msian model hasn't change much since Dr M's days...

Sometimes,one really wonder who is the black or who is the white guy.

A weak RM is definitely indicative of capital outflow... hence any investments in Msia needs to take into account a constantly depreciating RM - not unlike that of Rupiah...

Not Vested in Msia for a long time
I wonder this weak ringgit will it become a magnet for the currency speculators again.
1MDB issue is turning more and more ugly...

1MDB special task force freezes 6 bank accounts

KUALA LUMPUR (July 7): The special task force investigating the alleged transfer of billions of ringgit into the personal accounts of the prime minister has frozen six bank accounts in their probe so far.

Attorney-General Tan Sri Abdul Gani Patail, Bank Negara governor Tan Sri Zeti Akhtar Aziz, Inspector General of Police Tan Sri Khalid Abu Bakar and MACC chief commissioner Tan Sri Abu Kassim Mohamed said in a joint statement that the taskforce also seized documents linked to 17 bank accounts at two banks for further investigation.

"The order to freeze the six accounts was made on Monday," the statement read.

WSJ puts documents online showing money trail to Najib’s accounts

SINGAPORE (July 7): The Wall Street Journal (WSJ), which broke the news about US$700 million ($950 million) of funds going to private bank accounts of Prime Minister Datuk Seri Najib Razak, has now posted documents online that detail the money trail.

These documents include a remittance application form, a cash deposit authorisation letter and charts outlining the flow of money.

Some numbers, however, have been blanked out in the documents.
Pages: 1 2 3 4 5