Maxis set for $3.3 bln IPO in Asia share sale boom
Published on Tue, Nov 10, 2009 at 12:59 | Source : Reuters
Updated at Tue, Nov 10, 2009 at 13:10
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
Maxis set for $3.3 bln IPO in Asia share sale boom
Malaysia's biggest mobile phone operator Maxis Bhd is set to raise USD 3.3 billion in Southeast Asia's biggest initial public offering, as companies rush in for multi-billion dollar listings before the year ends.
Maxis' valuation at about 16 times is the highest among Malaysian telecommunication firms. DiGi, which offers higher dividends, trades at a price to earnings multiple of 14-15 times 2009 earnings and Axiata, with regional growth exposure, trades at 13-14 times.
An external spokesman for Maxis declined comment on the pricing but said the company will issue a statement later in the day.
PRICING WITHIN EXPECTED RANGE
The share offer comes after Malaysian Prime Minister Najib Razak asked Maxis to re-list to boost liquidity and draw in investors in the market.
On Tuesday, sources told Reuters Maxis will price the institutional portion of 2.0 billion shares at 5.00 ringgit a share, versus the initial price band of between 4.80 ringgit and 5.50 ringgit each.
On Monday, sources said the issue was likely to be priced between 5.00 to 5.20 ringgit a share.
The listed company will be a stripped down version as it will house just the Malaysian business, leaving the fast-growing Indian and Indonesian operations with its unlisted parent Maxis Communications Bhd.
Proceeds from the share offer will be used to reduce Maxis Communications' debt and fund operations in Indonesia and India.
CIMB, Credit Suisse, Goldman Sachs, UBS, JP Morgan and Nomura are joint bookrunners for the deal.
