Ranhill Energy and Resources, a Malaysian utility firm, announced that it will be returning all the funds to its investors after nixing the MYR 753 million ringgit (US $234 million) raised in the initial public offering last week.

The announcement came on the heels of the Securities Commission of Malaysia to defer the listing, set to debut in Kuala Lumpur on July 31. It came following the suspension notice issued by Petroliam Nasional Bhd on Ranhill's affiliate.

State-owned Petroliam issued a suspension notice to Perunding Rranhill Worley Sdn., which is owned by Ranhill Energy CEO Hamdan Mohamad, after assessing its work on a government project in Malacca, located south of Malaysia.

In a statement issued today, the energy and water company said that the resolution to cancel the IPO was agreed by the board. The decision was also the result of its consultation with Maybank Investment Bank, who served as adviser to the IPO, and joint global coordinators Maybank and CIMB Investment Bank.