Maxis raises $3.3 billion through Malaysia’s largest IPO
12 Nov 2009
Malaysia's leading mobile operator Maxis Berhad (Maxis) has successfully raised Malaysian ringgit (RM) 11.2 billion equivalent to $3.3 billion through a landmark IPO, the largest ever in South East Asia, to fund its development and expansion plans in the region.
The IPO comprised issue of 2.25 billion equity shares of Maxis or 30 per cent, amounting to $3.3 billion, at a price of RM5.00 for institutional and other specified investors, and RM4.75 for retail investors.
The issue evoked strong response from both international and Malaysian investors with an overall over-subscription of around 2.4 times.
On completion of the issue, the company's current shareholders Usaha Tegas Sdn Bhd and its affiliates, Bumiputera foundations and Saudi Telecom Company, holding an effective interest of 45 per cent, 30 per cent and 25 per cent, respectively, will collectively continue to hold 70 per cent interest in Maxis. Saudi stake will reduce to 17.5 per cent, while the other two Malaysian holders combined will have a 52.5 per cent stake.
Maxis chairman, Raja Tan Sri Dato' Seri Arshad said, ''The issue marks an important milestone in the development of Maxis and supports the Company's plans to focus on developing and growing its operations.''
The Maxis IPO is the first to introduce the concept of cornerstone investors in Malaysia, or investor who agree not to sell their shares for a period of six months and in return obtains a preferential allotment.