Malaysia’s biggest mobile phone operator Maxis Bhd is set to raise $3.3 billion in Southeast Asia’s biggest IPO
Malaysia’s biggest mobile phone operator Maxis Bhd is set to raise $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, together with China Minsheng Banking Corp and casino firm Sands China Ltd, will lead more than $10 billion in share sales in Asia, joining more than 30 companies planning to list in either Hong Kong or India over the next few months.
· Southeast Asia’s new share offerings — which collapsed during the financial crisis — is slowly reviving after it trailed China, where IPOs were helped by record low interest rates and economic stimulus packages.
· The IPO from Maxis will be followed by a $2 billion listing of CapitaLand’s shopping mall trust in Singapore later this month as issuers try to tap in investor demand ahead of 2010 when there is some uncertainty about a recovery.
· Maxis’ offer of 2.25 billion shares received strong demand as its size ranks it among the top five stocks on Malaysia’s benchmark index.
· The listing comes just two years after Maxis was taken private by reclusive Malaysian billionaire owner, Ananda Krishnan, who owns telecom assets in India and Indonesia.
· Ananda, ranked by Forbes magazine earlier this year as Southeast Asia and Malaysia’s second richest man with assets totalling $7 billion, owns a 45-percent stake in Maxis Communications while Saudi Telecom own a 25-percent stake. The rest is led by domestic funds in Malaysia.
· 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.
· 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.
· 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.
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