May 15, 2015 / 2:21 AM / 2 years ago

UPDATE 1-Malakoff makes lukewarm debut in biggest Malaysia IPO in nearly three years

* Shares up 0.6 pct after $766 mln raised in listing

* Firm positions itself for SE Asia power demand growth (Adds company comment, market conditions)

KUALA LUMPUR, May 15 (Reuters) - Shares of Malakoff Corporation Bhd, Malaysia's biggest independent power producer, edged up a fraction on their Friday debut, as investors remained cautious in a fallow year for listings on a stock that offers longer-term exposure to Southeast Asia's growing demand for electricity.

Malakoff shares were trading at 1.81 ringgit per share on Friday morning, down from a high of 1.84 ringgit per share, but still above the initial public offering price of 1.80 ringgit.

The 2.74 billion ringgit ($766 million) listing is the biggest for Malaysia's becalmed IPO market since 2012. Listing proceeds have totalled $10.9 million so far this year, just 1 percent of what was raised in 2014.

Malakoff is also Southeast Asia's largest independent power firm by generation capacity, and plans to use funds raised to repay debt as it positions itself for growth in a region with increasing electricity demand growth.

"Moving forward, we aim to expand our effective power generation to 10,000 megawatts (from almost 6,000 megawatts now) and our effective water production capacity by approximately 150 percent by 2020," Chief Executive Officer Syed Faisal Albar told reporters on Friday.

Malakoff hired Maybank as the transaction manager for the IPO. Maybank is also the joint global co-ordinator with CIMB, Credit Suisse and JPMorgan. Bank of America Merrill Lynch, Deutsche Bank, HSBC, Morgan Stanley, Nomura and RHB are joint bookrunners.

$1 = 3.5755 ringgit Reporting by Yantoultra Ngui and Al-Zaquan Amer Hamzah; Editing by Praveen Menon and Kenneth Maxwell

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