Malaysia's Seven Convenience plans $218 million IPO-draft prospectus


KUALA LUMPUR, Sept 24 (Reuters) - Seven Convenience Bhd, a7-Eleven convenience store chain operator in Malaysia, isoffering up to 530.33 million shares in an initial pubicoffering (IPO) that could be worth about 700 million ringgit($218.82 million), a draft prospectus showed on Tuesday.

The IPO is expected before the end of the year and will beused to fund the company's expansion and refurbishment of itsstores, information technology systems and for working capital,the prospectus showed.

Controlled by Malaysian billionaire Vincent Tan, thecompany's offer represents up to 43 percent of its enlargedpaid-up capital, of which 490.78 million shares or 39.8 percentwill be offered to institutional investors.

The balance of 39.55 million shares or 3.2 percent will beallocated to retail investors. There is an over-allotment optionof up to 74.03 million shares or 14 percent of the IPO sharesoffered, the prospectus showed.

Seven Convenience, part of Berjaya Retail Bhd, is Malaysia'slargest convenience store chain with close to 1,500 outlets,according to its prospectus.

The company recorded revenue of 1.58 billion ringgit andprofit after tax of 40.5 million ringgit in 2012, representing acompound annual growth rate of 9.7 percent in revenue and 22.4percent in profit from 2010 before its parent company BerjayaRetail was delisted.

Seven Convenience attributed the growth in revenue to theincrease in the number of stores and same-store sales. It saidprofit grew from an increase in commissions on its in-storeservices.

Tan, Malaysia's tenth richest person according to Forbes, took Berjaya Retail private in 2011, nine months after thecompany was first listed on Aug. 16, 2010, due to the dismalperformance of the shares.

The company has given no information on pricing of theshares and did not provide any details on the size of thelisting or a time frame for the IPO process.

Seven Convenience hired Maybank Investment Bank as theprincipal adviser, joint global coordinator, joint bookrunner,joint managing underwriter and joint underwriter for thelisting. Joint global coordinator and joint bookrunner is UBS.CIMB Investment Bank is the joint bookrunner and jointunderwriter.

($1 = 3.19 Malaysian ringgit) (Reporting By Yantoultra Ngui; Editing by Matt Driskill)

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