Satellite television operator Astro, which is making an initial public offering of up to 508.40 million shares, has priced the retail portion at a minimum RM3.80 per share, according to the company's prospectus issued today.

"The final retail price will equal the lower of the retail price of 3.80 ringgit per share or 90 percent of the institutional price, to be determined by way of bookbuilding," it said.

The IPO of Astro All Asia Networks, owned by tycoon Ananda Krishnan, comprises an institutional offering of up to 425 million shares and a retail portion of 83.40 million shares.

Astro's IPO has been billed as one of the largest in Asia this year.

Based on a minimum subscription of 333.40 million shares, the IPO will raise proceeds of RM1.37 billion, it added.

Of the retail portion, 19.07 million shares have been reserved for Astro's employees, 4.00 million for employees of Usaha Tegas and its subsidiaries as well as Khazanah Nasional Bhd, 34.00 million for eligible subscribers, retailers and distributors, and 26.33 million for the investing public.

Net loss

For the year to January 2003, Astro posted a net profit of RM293.11 million but for the first six months to July this year, it made a net loss of RM30.77 million, according to its financial results in the prospectus.

For the year to January 2004, Astro expects sales of RM1.41 billion, compared with RM1.148 billion a year earlier.

For the six months to July, it registered sales of RM651.26 million.

According to the prospectus, assuming maximum subscription, Astro will post a year to January 2004 consolidated profit after taxation and minority interests of RM10.2 million; but based on a minimum subscription, profit is estimated at RM5.2 million.

It said applications for the retail portion opened today and closes on Oct 8, while that for the institutional offering is between Oct 1 and Oct 10.

The price determination date is set for Oct 11, balloting on Oct 13 and the tentative listing is set for Oct 28.

Sister company Maxis Communications Bhd, the country's top cellular operator, was floated last year and is valued at around RM12 billion.

Astro subscribers grew from 777,747 at the end of 2001 to some one million at the end of 2002. - AFP