KUALA LUMPUR: The listing plan for the Duta-Ulu Kelang Expressway (DUKE) Highway is ongoing and concessionaire Ekovest Bhd said the IPO could take place within seven years.
Ekovest managing director Datuk Seri Lim Keng Cheng said this after the company's EGM today.
"The IPO plan is ongoing (but) depends on the market (conditions)," he said when asked about the probability of DUKE being listed.
The listing of the highway is part of the deal with the Employees Provident Fund (EPF) when it bought a 40 per cent equity interest, valued at RM1.13 billion, in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), a wholly-owned subsidiary of Nuzen Corporation Sdn Bhd.
Nuzen Corp, in turn, is the wholly-owned subsidiary of Ekovest.
Aside from the pathway to an IPO of DUKE, the EPF-Ekovest deal also deems a trade sale of the highway to a third party as an alternative.
Astramina Advisory managing director Wong Muh Rong said that this is to ensure that a return of 11.5 per cent is generated for EPF and Ekovest.
Wong is the external advisor to the corporate exercise and was present at the EGM.
While DUKE1 is operational, DUKE Phase two (DUKE2) is set for completion by mid-year.