KUALA LUMPUR (June 20): Wasco Bhd (KL:WASCO) is planning to list its wholly owned unit, Wasco Greenergy Bhd, which operates biomass and steam energy businesses, on the Main Market of Bursa Malaysia.

The initial public offering (IPO) will involve up to 150 million shares, comprising an offer for sale of up to 75 million shares by selling shareholders Wasco and Tema Energy Ventures Sdn Bhd, and a public issue of 75 million new shares. The offering represents 30% of Greenergy’s enlarged issued share capital of 500 million shares.

The institutional offering will consist of up to 119.5 million shares, made up of 75 million offer shares and 44.5 million new shares, with the final price to be determined via bookbuilding.

The retail offering will involve 30.5 million shares, of which five million shares will be allocated to eligible employees and directors of Greenergy and Wasco, 15.5 million shares to entitled Wasco shareholders, and 10 million shares to the Malaysian public via balloting.

The initial retail price will be set prior to the launch of the prospectus, according to its filing with Bursa Malaysia.

Proceeds from the public issue, which will accrue entirely to Greenergy, will be used to fund business expansion — particularly in biomass steam power plants — as well as its operations in Indonesia, capital expenditure, digitalisation initiatives, and research and development.

Meanwhile, proceeds from the offer for sale, which will go to Wasco, are earmarked for working capital and general corporate purposes. The final quantum will depend on the IPO pricing, which has yet to be finalised.

Greenergy currently owns a 100% stake in Wasco AgroTech Sdn Bhd and a 60% stake in Wasco Thermal Sdn Bhd (WTSB).

As part of a pre-IPO restructuring, Greenergy will acquire the remaining 40% stake in WTSB from Tema Energy for RM19.3 million, to be satisfied through the issuance of 14.4 million new shares at RM1.34 each. Following the acquisition, Greenergy will undertake a bonus issue of 295.6 million shares on a pro-rata basis to Wasco and Tema Energy. 

Tema Energy’s shareholders include Tee Kian Lim (26.35%), Teh Khim Choon (25.18%) and Soo Hock Tiong (22.26%).

The proposed acquisition is conditional upon, among others, approval from the Securities Commission Malaysia (SC) and is expected to be completed prior to the registration of Greenergy’s prospectus with the SC.

The proposals are expected to be completed by the fourth quarter of 2025. CIMB Investment Bank Bhd has been appointed as the principal adviser for the exercise.

Shares of Wasco closed down 2.5 sen or 2.56% at 95 sen on Friday, giving it a market capitalisation of RM751.2 million.