A conglomerate controlled by one of Indonesia's wealthiest families is planning to list power assets in an initial public offering of up to $800 million in Singapore, in what could be the city's biggest IPO in four years.

Jakarta-based Sinar Mas Group, the Widjaja family's energy-to-banking conglomerate, is planning to bundle the assets into a business trust and sell units in the trust to the public in the first half of 2017, according to people familiar with the matter. Business trusts, a popular structure among investors in Singapore, provide a hefty dividend for yield-hungry investors.

The company has hired Credit Suisse Group AG and Nomura Holdings Inc. to handle the IPO, the people said.

Sinar Mas is planning to raise between $600 million and $800 million from the sale and bankers have already started gauging appetite for the offering from investors, one of the people said. A final decision hasn't been made on which of its assets will be included in the deal, one of the people said.

If Sinar Mas succeeds in raising $800 million, the offering would be the biggest to launch in Singapore since the May 2013 IPO of Asia Pay Television Trust, an investment vehicle for cable-TV operator Taiwan Broadband Communications, which raised $824 million.

With interest rates globally at record lows, investors have been willing to buy into business-trust deals that offer high dividend yields. Singapore's stock exchange is home to nearly 60 trusts, including real-estate investment trusts, with a combined market capitalization of about $71 billion. Some REITs now offer yields close to 7%, while business trusts mostly offer even higher yields.

Sinar Mas's energy and infrastructure unit, PT Dian Swastatika Sentosa Tbk, has operations in power and steam generation, coal mining and chemical trading, among other activities. The unit is one of six run by the conglomerate, alongside its pulp and paper, agribusiness and food, financial services, real-estate development and telecommunications divisions.

Write to Alec Macfarlane at Alec.Macfarlane@wsj.com and P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

November 10, 2016 07:15 ET (12:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.