Malaysian energy and water company Ranhill Energy and Resources Bhd on Thursday launched the bookbuilding of its up to US$240 million initial public offering in Malaysia, seeking to raise funds to repay debt and for working capital, according to a term sheet of the deal seen by Reuters.

The company and its shareholders are offering 328.72 million shares to institutional investors in an indicative price range of RM1.70 to RM1.85 per share, valuing the company at a forward price-to-earnings ratio of 8.8 times to 9.6. About 78.28 million shares are allocated for the retail portion.

The deal is slated to be priced on July 15, with its debut set for July 31.

Cornerstone investors, which include Corston-Smith Asset Management Sdn Bhd and Eastspring Investment Bhd, took 118.27 million shares, or 12.3 per cent of the company's enlarged share capital, according to the sheet.

Maybank Investment Bank is the principal adviser for the IPO. CIMB Investment Bank and Maybank Investment Bank are the joint global coordinators and bookrunners. They are also the underwriters for the deal.-- Reuters