Affin Bank weighs IPO of asset management unit


KUALA LUMPUR (Bloomberg) -- Affin Bank Bhd is considering an initial public offering of its asset management unit that could raise about RM500mil, people familiar with the matter said.

The bank 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 RM60bil 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 US$477mil in IPOs so far this year, already 4.5% above last year’s total.

Affin Hwang Asset Management contributed profit before tax of RM84.2mil to Affin in the nine-month period ended Sept. 30, a 13.6% increase from RM74.1mil 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.

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