KUALA LUMPUR (May 22): Khazanah Nasional Bhd has completed a placement of 172.3 million shares in Telekom Malaysia Bhd (TM) at RM4.27 per share, raising gross proceeds of RM735.7 million.

This happens to be Khazanah's second share sale in a utility this year, having sold 85 million shares, or a 1.5% stake, in Tenaga Nasional Bhd on April 24, according to a filing with Bursa Malaysia. However, the transaction price was not revealed in the filing.

In a statement, Khazanah said the TM shares placement price represents a 3.61% discount to the closing market price of RM4.43 on May 21.

“The share placement exercise is part of the ongoing restructuring of Khazanah’s overall portfolio, with the proceeds to be utilized for future new investments and the diversification of Khazanah’s asset allocation.

“With strong market demand for the Malaysian blue-chip company, the share placement allows Khazanah to increase the free float and attractiveness of TM as an investment,” it said.

Khazanah said domestic long-only funds, foreign institutional investors and existing institutional investors participated in the share placement exercise.

It said domestic institutional investors made up a majority of the buyers.

The share placement exercise is the largest telecommunications-related placement in Malaysia and the third largest in Asean so far this year, it said.

CIMB and Credit Suisse are joint bookrunners for the share placement exercise

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