Khazanah Nasional said in a statement the share placement exercise was part of efforts to rebalance its portfolio and recycle investments from existing assets into new assets.

"Proceeds from the placement will be utilised for new investments, including investments in new strategic sectors that can help to spur Malaysia's economic growth and create new high-skilled jobs," the fund said.

Khazanah's shareholding in Telekom Malaysia will stand at 20.1% following the placement, it said.

Last year, Khazanah also sold shares in Telekom Malaysia, raising 735.7 million ringgit, as part of its portfolio restructuring.

Credit Suisse and CIMB were joint bookrunners for both placement exercises.

(Reporting by Rozanna Latiff. Editing by Jane Merriman)