Malaysia's Maxis to make SEAsia's biggest listing
Maxis, Malaysia's top mobile operator, is tipped to receive a warm welcome back to the bourse bourse (brs), term applied to a European stock exchange. The first international bourse was established in Antwerp in the 16th cent. this month in an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. worth around 3.43 billion dollars, billed as the biggest in Southeast Asian history.
Maxis Berhad, controlled by reclusive re·clu·sive
1. Seeking or preferring seclusion or isolation.
2. Providing seclusion: a reclusive hut. Malaysian tycoon Ananda Krishnan Tan Sri Tatparanandam Ananda Krishnan (Tamil: த. ஆனந்தகிருஷ்ணன்; born 1938) is a Tamil Malaysian businessman and philanthropist. and Saudi Telecom, is launching the initial public offering (IPO) on Bursa Malaysia The Bursa Malaysia or Malaysia Exchange, MYX previously known as Kuala Lumpur Stock Exchange (KLSE, Bursa Saham Kuala Lumpur in Malay) dates back to 1930 when the Singapore Stockbrokers' Association was set up as a formal organisation dealing in two years after it was taken private and de-listed.
It is offering 2.25 billion, or 30 percent, of its shares at an indicative price of 5.20 ringgit ring·git
See Table at currency.
Noun 1. ringgit - the basic unit of money in Malaysia; equal to 100 sen (1.52 dollars) which would raise 11.7 billion ringgit. Most of the shares will go to institutional investors.
Parent company Maxis Communications is expected to deploy the proceeds of the sale, slated for November 19, on funding expansion in the booming Indian and Indonesian markets, and to reduce debt.
Economic pundits are upbeat about the listing despite the uncertain global economic outlook that has soured other recent share offerings in the region, but warn that the market remained unpredictable.
Yeah Kim Leng, chief economist with ratings agency RAM Holdings, said that Maxis' dominant position in the domestic telecoms industry had triggered an early rush to collect application forms.
"Investors can smile. The listing is likely to be successful," he told AFP (1) (AppleTalk Filing Protocol) The file sharing protocol used in an AppleTalk network. In order for non-Apple networks to access data in an AppleShare server, their protocols must translate into the AFP language. See file sharing protocol. , but said there were unlikely to be any hefty immediate profits.
"The market is very volatile. It is not a sure bet. But the sentiment is strong for Maxis," he said.
The listing includes only Maxis' Malaysian mobile business and excludes its ventures in India and Indonesia which remain under Maxis Communications, the unlisted parent company.
Alliance Research said Maxis remains the leading mobile operator in Malaysia in both the prepaid and postpaid segments with some 11.4 million subscriptions as at end of the first half of 2009.
Its postpaid segment commands a thumping 46.4 percent of the local market share, but Alliance said the business had "limited growth prospects, without overseas operations".
"The new listed entity will be without its overseas operations which could offer robust growth potential going forward. Investors are left with domestic operations, in which mobile business faces limited growth," it said.
Nazir Razak, group chief executive of CIMB CIMB Commerce International Merchant Bankers Berhad
CIMB Current Issues in Molecular Biology (periodical)
CIMB Corporate Information Management Branch (British Columbia, Canada) which is the principal adviser for the listing exercise, has said the IPO will be the biggest in Southeast Asian history.
He has defended the company's growth prospects, saying there is still plenty of potential for the group's broadband and data segments in Malaysia and that SIM card penetration is also predicted to grow.
Ananda Krishnan owns a 45 percent stake in Maxis Communications, while Saudi Telecom owns 25 percent and the remainder is held by local funds.
Apart from Maxis, Ananda Ananda
(flourished 6th century BC, India) First cousin and disciple of the Buddha. A monk who served as the Buddha's personal attendant, he became known as the “beloved disciple.” It was Ananda who persuaded the Buddha to allow women to become nuns. -- ranked by Forbes magazine as Malaysia's second-richest man -- has interests in the country's pay TV operator Astro, gaming and power firm Tanjong and satellite services company Measat.