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Maxis raises $3.3b in SEA's biggest IPO

14 Dec 2009
00:00
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Malaysia's Maxis re-entered public trading last month with an 11.2 billion ringgit ($3.3 billion) IPO.

The successful listing has given the Malaysian mobile operator a market capitalization of up to 42.5 billion ringgit.

The funds will help it expand into the Indian market, where it is prepared to invest up to $6 billion, FT.com reported. It is also planning to tip more funds into the domestic fixed-line broadband.

The offering - southeast Asia's biggest ever IPO - came two years after the company was taken private by Ananda Krishnan's Binariang group.

Around 90% of the shares were offered to institutional investors for five ringgit per share. The remaining 10% were sold at retail for $4.75.

Maxis sold 30% of its existing share capital to raise the $3.3 billion, which represents a price to earnings multiple of 16 times based on FY09 figures. Only Maxis' domestic operations were included in the offering. Its Indian and Indonesian units remain under the control of unlisted parent Maxis Communications.
Maxis, meanwhile, announced its Q3 profit grew 28.1% to 615 million ringgit. CEO Sandip Das attributed the result to healthy subscriber growth - Maxis boosted its mobile subscribers 3% to 11.7 million during the quarter, seeing particular growth in wireless broadband.

"Our investment to modernize our 3G network over the last few quarters is beginning to pay off," he told shareholders. "By the end of this year, we will be well on course toward accomplishing our plans to have a full HSPA 3G network."

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