Malaysia's top telecoms firm Maxis plans to raise at least RM10.8 billion (US$3.21 billion) in Southeast Asia's biggest IPO in more than a decade, although the pricing was at the low end of expectations.

Maxis, the country's largest mobile phone company by market share, has set an indicative price range from RM4.80 a share, according to a fund manager who has been informed about the pricing details.

Institutional book-building for the IPO, the largest ever in Malaysia, is expected to begin from tomorrow, said the fund manager.

NONE Controlled by reclusive Malaysian billionaire Ananda Krishnan ( right ) and Saudi Telecom, Maxis will place out 625 million shares to conerstone investors at a maximum price of RM5.20 a share in the IPO, said a second source.

The company has roped in four cornerstone investors including Malaysia's biggest pension fund and international investors in its offering and could add "one or two more," the source said.

It also plans to add anchor investors during its book-building process, the source said.

A Maxis spokesperson said the company would make an announcement at the appropriate time.

Indian, Indonesian markets excluded

Analysts said Maxis may have a hard time marketing the IPO because the listing does not include its fast-growing Indian and Indonesian business.

The deal is coming to market at a time when demand for IPOs has soured slightly with South Korea's POSCO Engineering & Construction saying on Tuesday it would scrap its planned $926 million deal.

The RM4.80 - RM5.20 price range for Maxis was at the lower end of market expectations. Local media reports had earlier speculated a price range of RM4.95 to RM5.50 a share.

"I won't say it's very attractive. This is just the Malaysian business," said an analyst from OSK Investment Bank. "Investors are also very mindful of the dividend yield. If the price goes above RM5, it could put a constraint on the yield."

Malaysian telcos are trading at a steep premium to their regional peers. Some fund managers have said they will most likely own a smaller portion of Maxis shares in their portfolios than the stock's actual weightage in the benchmark FTSE Bursa Malaysia.

Ananda took Maxis private two years ago in a deal that valued the company at about RM40 billion after making expensive acquisitions in India and Indonesia.

Maxis, once one of the most widely owned stocks by foreign investors in Malaysia, will sell 2.25 billion shares, or 30 percent of its existing share capital in the listing.

Proceeds from the listing are aimed at reducing parent Maxis Communication Bhd's debt and meeting funding requirements of its investments in India and Indonesia.

New broadband packages

In another development, Maxis is expected to double its wireless broadband subscribers by year end, boosted by its latest broadband campaign "Something for Everyone", reports Bernama.

Maxis general manager and head of broadband Afizulazha Abdullah said the new campaign offered packages from as low as RM8 per day to RM48 per month.

"Through the new packages, customers can enjoy data transmission speeds of up to 7.2 mbps across Maxis' expanded high-speed networks.

"These new broadband packages are designed to suit different Internet users while offering them a cost efficient way to go online as they only pay for what they need," he said at the launch of the broadband campaign today.

According to Afizulazha, the new campaign will help the company double its sales in the wireless broadband segment by year end.

He said the campaign had received very encouraging response since its soft launch in July this year.

He also said Maxis had made a significant investment towards upgrading all aspects of its telecommunications infrastructure.

In addition to providing HSPDA-powered internet services in the Klang Valley, Penang, Kulim and Johor Bahru, the mobile services operator has also aggressively expanded the technology to new areas.

These include Alor Setar, Klang, Batu Pahat, Melaka,Ipoh, Sungai Petani, Seremban, Kuantan, Kota Bharu and Kuala Terengganu.

The company is also upgrading its network coverage in Sabah and Sarawak.

- Reuters