Malaysia sovereign wealth fund backs $1.37bn China Galaxy IPO


stocks2_lrgMalaysian sovereign wealth investor Khazanah Nasional Berhad is among six cornerstone investors planning to back China Galaxy Securities’ $1.37bn Hong Kong IPO.

Khazanah plans to commit up to $100m to the IPO after it as priced at between HK$4.99 and HK$6.77 per share.

Another $260m is expected to be committed by former Khazanah portfolio company AIA, China Life Insurance, China General Technology, China Cinda Asset Management and Sino Life.

Khazanah, which has more than $35bn under management, previously backed the IPO of New China Life Insurance on the Hong Kong bourse in 2011.

In December 2012 Khazanah Nasional sold its stake in Hong Kong-listed life insurer AIA in an HK$2.76bn ($356m) deal.

The fund sold more than 92 million shares held by its Mount Swettenham Investments arm at a discount of up to 1.2 per cent on the previous close, according to Reuters.

The sell-down came ahead of the expiration of a lockup on AIA shares by American International Group.

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