KUALA LUMPUR (Nov 11): Tenaga Nasional Berhad (TNB) has denied a media report that it is planning to pursue an initial public offering (IPO) for its power generation business next year.
“The company is not working on any groundwork for a listing at the current moment, as its focus is to drive operational efficiency for the generation company,” TNB said in a filing with Bursa Malaysia.
TNB said that in line with its strategic transformation plan, Reimagining TNB, and as per its shareholders’ mandate approved in February, the group has completed the reorganisation of TNB Power Generation Sdn Bhd on Oct 1.
“This exercise aims to group together and corporatise divisions in TNB as wholly-owned subsidiaries of TNB, for increased focus, efficiency and transparency," the group said.
The utility giant added that it will continue to explore opportunities to further enhance shareholder value.
Yesterday, Bloomberg quoted a source as saying that TNB is working with an adviser on its planned restructuring, and aims to finish the process as soon as the first half of next year.
It also said investors would be given shares in the unit in proportion to their existing holdings in TNB upon listing of the group’s power generation business.
The report sparked buying interest in TNB shares, resulting in the stock jumping 9.17% to RM11.20 yesterday.
The uptrend continued today, with the counter closing 14 sen or 1.25% higher at RM11.34, for a market capitalisation of RM64.69 billion. Some 9.89 million shares were traded.