Malaysian sovereign wealth fund Khazanah Nasional Bhd said on Friday it raised 735.7 million ringgit ($169.1 million) through a share sale to institutional investors in national telecoms firm Telekom Malaysia.

The fund said in a statement it sold 172.3 million shares at 4.27 ringgit apiece, a 3.6% discount to Telekom's closing price on Thursday.

It said the Telekom placement is the third largest in the ASEAN region so far this year and is part of a restructuring of Khazanah's overall portfolio, with the proceeds to be utilised for future new investments and the diversification of Khazanah's asset allocation.

Khazanah, which owned 26.2% of Telekom equity as of March, according to Refinitiv data, said domestic long-only funds, foreign institutional investors and existing institutional investors participated in the share sale, with domestic investors making up a majority.

CIMB and Credit Suisse were joint bookrunners.

(Reporting by Liz Lee; Editing by Muralikumar Anantharaman)