Sarawak Energy eyes mega IPO to power Malaysia as Battery of ASEAN

Sarawak Energy generates most of its power from hydropower. (Photo: iStock)

Sarawak Energy, Malaysia’s state-owned utility, is reportedly considering a listing of its generation business, which could rank among the largest IPOs in the country in recent years. The company exports power to Indonesia and intends to extend supplies to Brunei, Sabah, and Singapore, reflecting its regional renewable energy ambitions.

Financing growth through potential IPO

The company is targeting 10 GW of generation capacity by 2030 and 15 GW by 2035, up from about 6 GW currently. To reach those targets, a RAM Ratings report suggests Sarawak Energy will need to almost double its annual capital expenditure to around RM4.5 billion (USD$1.08 billion). The potential listing is expected to introduce private investment and provide funding for the company’s long-term capacity goals.

The Sarawak government has directed the company to review and restructure its organizational framework, separating power generation from distribution. Under the plan, private sector investment would be introduced into generation, while Sarawak Energy would continue in its role as the single buyer for electricity distribution in the state. Sarawak Premier Abang Johari has said the review is part of the state’s broader vision of becoming the “Battery of ASEAN.”

The company is reported to have approached several local banks to study the feasibility of a listing. While the exact timing remains uncertain, it is expected to become clearer after Sarawak’s state election next year, with the IPO likely within the next two years, The Edge reported.

Sarawak Energy’s financial performance will be a key factor in any future valuation, which remains influenced by market conditions and the wider volatility of the energy sector. The company’s revenue has risen steadily over the past five years, rising from RM5.53 billion (USD$1.33 billion) in the fiscal year 2020 to a record RM7.3 billion (USD$1.75 billion) in the fiscal year 2024.

Profit after tax (PAT), however, has been more volatile. It peaked at RM2.73 billion (USD$660 million) in the fiscal year 2022, dropped sharply in the fiscal year 2023, and reached RM1.34 billion (USD$320 million) in the fiscal year 2024, marginally lower than the previous year despite higher revenue.

Sarawak Energy targets regional power expansion

Sarawak Energy’s core business spans generation, transmission, distribution, and retail, with a total installed capacity of 5,745 MW, the majority from hydropower. Beyond meeting domestic demand, the company already exports 190 to 200 MW to Indonesia and is planning to expand exports to Brunei, Sabah, and Singapore. 

The company’s ambition to power the wider region was also reflected in its participation in the International Forum on Pumped Storage Hydropower 2025 in Paris this September. The forum highlighted East Asia as a major center for pumped storage development, led by China, Japan, and South Korea. 

At the event, Sarawak Energy Group CEO Datuk Haji Sharbini Suhaili outlined the company’s strategy to scale up storage solutions and strengthen energy security, while positioning Sarawak as a renewable powerhouse for its neighbors.

Sarawak Energy Group CEO Datuk Haji Sharbini Suhaili (center) at the International Forum on Pumped Storage Hydropower 2025 in Paris. (Photo: Sarawak Energy)

Sarawak Energy is also involved in broader state and international initiatives. In 2025, Sarawak introduced Malaysia’s first Energy Transition Policy (SET-P), setting out priorities in renewable energy, hydrogen, energy efficiency, and carbon capture.

The company has also signed agreements with the Japan Bank for International Cooperation on financing and the Australian government on energy storage collaboration, reflecting ongoing engagement with regional partners in the energy sector.

Source: The Edge, Sarawak Energy, JBIC, Australian High Commission