Maxis re-listing !

MAXIS To Offer 2.25 Billion Shares At Indicative Price Of RM5.20 Per Share

KUALA LUMPUR, Oct 28 (Bernama) -- Maxis Bhd's initial public offering (IPO) will see the sale of 2.25 billion Maxis shares equivalent to 30 per cent of the company to new investors with an indicative offer price of RM5.20 per share.

"This is by far the largest public offering the country has ever seen," said chief executive of CIMB Group, Datuk Nazir Razak, in a statement released during Maxis' prospectus launch here Wednesday.

CIMB Investment Bank Bhd, Goldman Sachs and Credit Suisse are joint global coordinators for the IPO.

Based on current timelines, the pricing for the IPO is expected to be concluded by Nov 10, 2009 and Maxis is expected to be listed on the Main Market of Bursa Securities on November 19.

Upon listing, it is envisaged that Binariang GSM Sdn Bhd through Maxis Communications Bhd will effectively own 70 per cent of Maxis, the statement added.

The initial public offering of 30 percent of Maxis shares will be distributed to Bumiputera institutional and selected investors (862.5 million shares), retail offering to Malaysian public (150 million shares), eligible subscribers, dealers and distributors, directors and employees (62.295 million) and global institutional investors (1.175 billion).

The final IPO price will equal the lower of the IPO price of RM5.20 per share and 95 percent of the institutional price to be determined by way of bookbuilding, the prospectus disclosed.

Sustantial shareholders include Saudi Telecom from Saudi Arabia who will own 5,250 million indirect shares after the IPO, according to Maxis prospectus.

At a press conference after the launch, Nazir said Maxis would likely get the possible deals in the loan and bond market to raise RM5 billion of debt.

According to Maxis prospectus, Maxis is seeking to obtain long-term external debt financing of RM5 billion.

It was also revealed in the prospectus that as a result of the pre-listing restructuring, dividends and settlement of intercompany balances, Maxis owes Maxis Communications Bhd RM4.992 billion.

According to the prospectus, Maxis gearing ratio will stand at 0.6 times after pre-listing restructuring with a total debt of RM5.024 billion.

"This is the right time for Maxis to go into the market. This is the company with incredible track record and fundamentals," Nazir said.

Maxis currently enjoys 40 per cent share of the mobile phone market including a leading position in prepaid and postpaid categories.

Maxis is a subsidiary of Maxis Communications Bhd.

In the prospectus, Maxis also disclosed that it targets a payout ratio of not less than 75 percent of its net profit as dividends.

"The growth prospects and strong cash flows generated by Maxis Bhd will ensure that the company is an attractive investment on Bursa Malaysia for the global and domestic investor community," Chairman of Maxis, Tan Sri Arshad Raja Tun Uda said during the launch of Maxis prospectus today.

The launching was officiated by Minister of Information, Communication and Culture, Datuk Seri Dr Rais Yatim.

Key market drivers, Arshad said, also lie in Malaysia's compelling demographics.

"Fifty per cent of the population is estimated to be under 25 years of age, providing opportunities for growth both in terms of subscribers and adoption of new data services," Arshad said.

It is envisaged that the IPO exercise, will see Maxis become one of the largest stocks on the benchmark FBM KLCI of Bursa Malaysia.

"We will continuue to make investments in high quality infrastructure and customer service, a strong and effective distribution network, our brand and our experienced management team, so that we will continue to enjoy attractive margins," Arshad said.

The proceeds of the IPO will be used for various purposes including meeting the funding needs of its various other investments, debt repayment and distribution to its holding company, Binariang GSM Sdn Bhd.

In the press conference, Dr Rais also said the government aimed to increase the broadband penetration rate to 50 percent next year from 27 percent now.

"The government will like to create a level playing field for more parties to join the industry, be it in WiMax, WiFi," Rais said during the launch.

--BERNAMA

Since I get allocated 1 lot, so just buy it........RM5200 ......what a big amount...Maxis....cheooooong ah !!!!!