Malaysian tycoon Tan Sri Vincent Tan (pic) has deferred the $250 million (RM804.6 million) IPO of his 7-Eleven convenience store chain due to the year-end lull, Wall Street Journal (WSJ) reported.
A draft prospectus released earlier by Seven Convenience Bhd, which runs the 7-Eleven outlets, said the IPO offered up to 530.33 million shares and was scheduled before the end of the year, but the company is still answering queries from the Securities Commission, sources revealed.
The WSJ report also said that even if the regulator approved the listing plan sometime soon, the timing for an IPO roadshow would be bad as most investors would be on year-end holidays or caught up in festivities up to early next year, which would likely affect demand.
According to the WSJ report, Malaysia's IPO market has been lukewarm this year where earlier in the year, many companies and investors kept mostly on the sidelines, largely due to uncertainty over the May 5 general election.
Activity picked up in the second half of the year after Barisan Nasional returned to power.
So far this year, companies have raised about $2.48 billion (RM7.9 billion), according to Dealogic, a data tracker, making Malaysia the No. 3 IPO venue by value in Southeast Asia.
In 2012, Malaysia ranked first in the region, raising around $12 billion (RM38.6 billion), backed by buying by huge domestic state funds as well as by foreign institutional investors.
Apart from Seven Convenience, power-generation company Malakoff may raise $1 billion (RM3.21 billion). Iskandar Waterfront Holdings Sdn, a real-estate developer, is seeking up to $300 million (RM965.5 million).
Seven Convenience has allocated 490.8 million shares to be sold to institutional investors and the remainder to retail investors. - 26 November, 2013.