Pre-marketing for Maxis IPO next week

 

The pre-marketing for Maxis Bhd's initial public offering (IPO) of shares, possibly Malaysia's largest IPO in recent years, will start next week, a person familiar with the deal said yesterday.

The source, speaking on condition of anonymity, told Dow Jones Newswires that the listing exercise is targeted to be completed by the end of November.

The underwriters for the exercise will include JPMorgan, Nomura, and UBS, in addition to CIMB Investment, Credit Suisse and Goldman Sachs which have been named in a draft prospectus as the bookrunners.

Malaysia's dominant mobile phone operator last month said in the draft document posted on the Securities Commission website that it is looking to sell some 2.25 billion shares, or a 30 per cent stake.

Dow Jones said the document did not disclose the expected offer price, but analysts have estimated the IPO to raise at least RM2 billion.

Analysts said this would make it the largest IPO in Malaysia for several years and would underline the growing appetite for IPOs in Asia as the region begins to emerge from the global economic crisis.

Maxis Communications Bhd is 75 per cent owned by reclusive telecommunications and media tycoon Tan Sri Ananda Krishnan, who took the company private two years ago via his privately-held Usaha Tegas Sdn Bhd.

The remaining 25 per cent stake is held by Saudi Arabia state-owned Saudi Telecom Co.

Maxis Communications said only its Malaysian operations will be included in the share offer.

It plans to restructure its business ahead of the share sale so that its sizeable overseas operations will remain with the parent.

The parent's overseas investments include India's Aircel and Indonesia's PT Natrindo Telepon Seluler.

Maxis had 11.4 million mobile phone subscribers, representing around 40 per cent of total mobile phone subscriptions in Malaysia as of June 30.

It posted revenue of RM8.5 billion in 2008 and RM4.2 billion for the six months ended June.