Maxis hopes to raise over RM2 billion from IPO

comments     Published     Updated

Malaysia's biggest mobile phone operator Maxis Communications Bhd said today it hopes to raise more than RM 2 billion from the sale of new shares in an initial public offering expected in early July.

The company said as well as the offering of 410.88 million new shares, another 241.46 million existing shares will be offered by substantial shareholder Maxis Holdings Sdn Bhd.

Maxis Holdings is controlled by businessman Ananda Krishnan Tatparanandam, who has a stake of 39.3 percent in Maxis Communications.

The offering will be priced at RM4.80 for retail investors and RM5.33 for institutions and the sale of new shares is expected to raise RM2.01 billion, the prospectus said.

Maxis' listing is being closely watched by the market as it is one of the biggest this year, along with that of toll road operator Plus, which is also expected to list around the same time.

Analysts said the two listings were likely to soak up about RM6 to RM7 billion from the market.

Maxis, which has 2.3 million subscribers, had revenue last year of more than RM3 billion and a net profit of RM600 million.

The company said it expects sales to rise to RM3.63 billion this year with net profit is seen at RM825 million.

Maxis is one of five companies bidding for three third-generation (3G) mobile telecommunications licences.



Malaysiakini
news and views that matter


Sign In