MAXIS' RELISTING PRIVATE TENDERS WITHOUT INDIAN & INDONESIAN OPS AT RM5.00 TO RM5.50 PER SHARE GIVING MARKET AN IPO CAP OF ALMOST RM40 BIL MAXIS COMMUNICATIONS relisting will involve 2.25 bil shares, of which 2.075 bil will be offered to institutions and the remaining 174.7m shares for the public and its customers. The IPO is set to be the Country's biggest since 1995 and estimated at tender offering prices in first week Oct 2009 to the public at RM5.00 to RM5.50 per share totalling USD3.37 bil (RM11.8 bil). An average tender price of RM5.25 was used for the computation.
PROSPECTIVE PE MULTIPLES & DIVIDEND YIELDS
Market analysts are of the view that " .... MAXIS will likely trade at around RM5.60 based on a PE multiple of 18 times, taking into account its mobile market leadership thus deserving premium valuation over DiGi (16 times), but a discount to TM's fixed-line and broadband monopoly 20 times ....".
ECM LIBRA RESEARCH said at a prospective RM5.60 per share, MAXIS would generate minimum dividend yields of 4.2% in FY10. It added such yields were lower than its estimates for DIGI and TM ....".
MAXIS in the past had traded at such high PE multiples only during very bullish periods.
RE-IPO DETAILS
MAXIS COMMUNICATIONS BHD (MCB) presently owns 7.5 bil (100% of PUC) in MAXIS. It is the promoter of the listing exercise and selling shareholder. MCB in its EXCHANGE filing on Sep 18, 2009 said that it will hold 5.25 bil shares, representing 70% of the Paid-Up of MAXIS after the IPO. MAXIS will not issue new shares for the IPO and thus will not get any proceeds. The proceeds will go to the shareholders that are making the offer for sale.
Under the current listing exercise, of the 2.33% for the retail portion, 4.18 m shares representing 0.05% have been reserved for 4,175 eligible active Elite members of the 'Maxis One Club' whose accounts are not overdue as at Jun 30, and 6.12 m shares, or 0.08% for 2,142 eligible active dealers and distributors of MAXIS.
MAXIS TO TAKE ON MORE DEBT
MAXIS in the draft prospectus made it known that it would be taking on more debts to the sum of RM5 bil for its expansion going forward.
UNITS CONTROLLED BY MAXIS
The units controlled by MAXIS are ADVANCED WIRELESS TECHNOLOGIES, MAXIS ASIA ACCESS, MAXIS BROADBAND, MAXIS COLLECTIONS, MAXIS INTERNATIONAL, MAXIS MOBILE, MAXIS MOBILE (L), MAXIS MOBILE SERVICES, MAXIS MULTIMEDIA, MAXIS ONLINE and UMTS.
LISTING WITHOUT INDONESIAN & INDIAN OPERATIONS
" .... don't expect the same MAXIS of 2007 in this re-listing. The new MAXIS will be without the Indian and Indonesian operations, which were the high growth businesses. It will be a listing purely of the local operations ....".
