Malaysia’s Affin Bank weighs $123m IPO of asset management unit

The KL Tower is seen, with a background of the cityscape in Kuala Lumpur, Malaysia.

Affin Bank Bhd. is considering an initial public offering of its asset management unit that could raise about 500 million ringgit ($123 million), people familiar with the matter said.

The Malaysian lender is working with advisers on the potential listing for Affin Hwang Asset Management Bhd. in Kuala Lumpur as soon as the second half of next year, the people said, asking not to be identified as the matter is private.

Deliberations are at an early stage, and there’s no certainty they will lead to a transaction, the people said. Representatives for Affin did not immediately respond to requests for comment.

Affin Bank owns 63% of Affin Hwang Asset Management, according to its 2019 annual report. The investment manager also counts Japan’s Nikko Asset Management International Ltd. as a shareholder, the website of an affiliated unit shows.

Affin Hwang is Malaysia’s third-largest money manager by assets, after Public Mutual Bhd. and Principal Asset Management Bhd., according to data compiled by Bloomberg. It manages over 60 billion ringgit worth of assets as of June 30, 2020, according to its official website.

A successful listing would help boost Malaysia’s first-time share sale market, which has raised $477 million in IPOs so far this year, already 4.5% above last year’s total.

Affin Hwang Asset Management contributed profit before tax of 84.2 million ringgit to Affin in the nine-month period ended Sept. 30, a 13.6% increase from 74.1 million ringgit the same period a year ago, according to Affin’s latest financial statement. The company attributed the increase mainly to higher fee and commission income, the statement showed.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.