KUALA LUMPUR (Jan 16): MMC Corp Bhd's (Fundamental 0.85, valuation 2.40)’s energy subsidiary Malakoff Corp Bhd had obtained the "Shariah-compliant" classification from the Shariah Advisory Council of the Securities Commission (SC).

In a filing to the Bursa Malaysia today, MMC said that Shariah-Compliant Classification was given based on the latest audited financial statements of Malakoff for the financial year ended Dec 31, 2013, subject to the SC approving the Proposed Listing.

“The Shariah-Compliant Classification will remain valid until the next review by the Shariah Advisory Council of the SC based on Malakoff’s information for the next financial year,” the announcement read.

Malakoff, which was delisted in 2007 for RM9.3 billion, is 51% controlled by MMC, which has a 28.8% direct stake in the IPP and the remaining 22.2% through its wholly-owned subsidiary Anglo Oriental (Annuities) Sdn Bhd.

On Nov 27, 2014, MMC had announced the proposed listing of Malakoff, the country’s largest independent power producer (IPP) with a power generation capacity of about 5,020MW, amounted to 22.5% of Peninsular Malaysia’s total installed capacity.

Malakoff was proposing an initial public offering (IPO) of up to 1.52 billion ordinary shares of 10 sen each, comprising an offer for sale of up to 521.74 million existing shares and a public issue of one billion new shares.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)