KUALA LUMPUR, 3 NOVEMBER 2009 A proposed listing on the Malaysian stock exchange [Bursa Malaysia] by Maxis, a subsidiary of Malaysian telecommunications firm Maxis Communications, will be the largest public offering seen in the country.
This IPO [initial public offering] will see the sale of 2.25 billion Maxis shares, equivalent to 30 per cent of the company, to new investors, according to Maxis chairman YM [Yang Mulia] Raja Tan Sri Arshad Raja Tun Uda. It is envisaged that this exercise will see Maxis become one of the largest component stocks on the benchmark FBM KLCI [FTSE Bursa Malaysia KLCI, an enhanced benchmark index] of Bursa Malaysia.
We believe that Maxis Berhad's listing will enlarge Bursa Malaysia's market capitalisation and also add to the range of large, well-managed companies listed and traded on Bursa Malaysia, said Raja Tan Sri Arshad.
He said that by focusing solely on the Malaysian businesses that have stable cash flows, the newly listed Maxis would be able to put forward a strong dividend policy to its shareholders. In its prospectus, Maxis disclosed it targets a payout ratio of not less than 75 per cent of its net profit as dividends. The growth prospects and strong cash flows generated by Maxis Berhad will ensure that the company is an attractive investment on Bursa Malaysia for the global and domestic investor community.
Maxis is grateful for the support and guidance of the ministry, government and our regulator, he said. The company's sound financial discipline, corporate governance practices and strong customer support stand us in good stead for future growth. We will continue 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.
CIMB Investment Bank, Goldman Sachs and Credit Suisse are joint global coordinators for the IPO.
Great news for equity market
CIMB Bank group chief executive Dato' Sri Nazir Razak said Maxis currently has 40 per cent share of the mobile market including a leading position in prepaid and postpaid categories.
"This is by far the largest public offering the country has ever seen. Based on an indicative price of US$1.52 (RM5.20) per share, it will be more than three times the previous record," said Nazir. "This is also great news for the Malaysian equity market as it welcomes back a well-traded stock which will add more than 4.0 per cent to the total market capitalisation of Bursa Malaysia."
Sign up for MIS Asia eNewsletters.