Aiyo yo Another new IPO, Can I get it this time?
Written by Joseph Chin
Friday, 18 September 2009 17:29
KUALA LUMPUR: Maxis Communications Bhd (MCB) plans to list its Malaysian operations Maxis Bhd (Maxis), under an initial public offering (IPO) which will involve 2.25 billion shares, of which 2.075 billion will be offered to institutions and the remaining 174.79 million shares for the public and its customers.
The IPO is set to be the country's biggest since 1995 and estimated by sources at US$2 billion, as investors rush to capitalise on booming stock markets, according to Reuters.
Currently, MCB is the beneficial owner of 7.5 billion shares, representing 100% of the paid-up of Maxis. It is the promoter of the listing exercise and selling shareholder.
MCB said in its exposure draft posted on the Securities Commission website on Sept 18 that it will hold 5.25 billion shares, representing 70% of the paid-up of Maxis after the IPO.
Subsidiaries
The subsidiaries to listed under 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.
The group was taken private in May 2007 by Binariang GSM Sdn Bhd. After the privatisation in 2007, the subsidiaries recorded combined revenues of RM6.95 billion and profit after tax (PAT) of RM2.10 billion for the financial year ended Dec 31, 2006 (FY06).
"They had recorded combined revenues of RM7.69 billion; RM8.45 billion and RM4.24 billion and PAT of RM1.98 billion; RM2.4 billion and RM1.14 billion for the two financial years ended Dec 31, 2008 and for the six months ended June 30, 2009 respectively.
"For each of those periods, the subsidiaries’ mobile operations accounted for over 90% of its combined revenues. In addition, the subsidiaries’ combined earnings before interest, tax, depreciation and amortisation (EBITDA) increased from RM3.74 billion for FY06 to RM4.4 billion for FY08," it said.
Mobile subscriptions, revenue
According to the financial information made available, as at June 30, 2009, Maxis had 11.4 million mobile subscriptions or 40% of estimated 28.5 million mobile subscriptions in Malaysia.
Maxis’ revenue grew by 21.5% from RM6.95 billion in 2006 to RM8.45 billion in 2008, primarily driven by mobile subscriber growth. During the period, Maxis’ mobile customers grew from 8.1 million from end-2006 to 11.2 million at end-2008, reflecting a compound annual growth rate (CAGR) of 18.0%.
"Correspondingly, revenue from mobile services, which contributed over 90.0% of Maxis’ revenue in all years, grew from RM6.53 billion in 2006 to RM7.86 billion in 2008, an increase of 20.4%," it said.
Maxis also operates a fixed line network and an international gateway, which offers voice and data services using fibre optic, microwave and satellite TECHNOLOGY [].
"The fixed line services and international gateway services generated revenue of RM170.5 million and RM251.4 million respectively for 2006 and RM203.7 million and RM380.0 million respectively for 2008. Revenue from fixed line services and international gateway services constituted 2.4% and 4.5% respectively of Maxis’ revenue for 2008," it said.
Mobile services revenue increased from RM6.53 billion in 2006 to RM7.86 billion in 2008 at a compound annual growth rate of 9.7%. Mobile services revenue was driven by higher voice usage fees, roaming partners and interconnect revenue and non-voice revenue, which in total was more than the decrease in other revenue.
Voice usage fees
Voice usage fees increased between 2006 and 2008 mainly due to more postpaid and prepaid subscriptions, and an overall increase in usage from Maxis’ own customers, partially offset by a decline in the price for such services.
"Maxis’ mobile customer base increased from 8.1 million subscriptions in 2006 to 11.2 million subscriptions in 2008. The share of voice revenue in total mobile services revenue declined from 61.8% in 2006 to 57.2% in 2008 as the growth in voice revenue was lower than other components of mobile services revenue, particularly non-voice revenue," it said.
MCB added roaming partners and interconnect revenue increased from RM783.6 million in 2006 to RM922.8 million in 2008 as a result of increases in interconnect revenue from RM581.6 million in 2006 to RM670.2 million in 2008 and roaming partners revenue from RM202.0 million in 2006 to RM252.6 million in 2008.
Non-voice revenue
Non-voice revenue increased from RM1.51 billion in 2006 to RM2.28 billion in 2008 at a compound annual growth rate of 23.0%. The share of non-voice revenue as a percentage of total mobile services revenue increased from 23.1% in 2006 to 29.0% in 2008.
The increase in non-voice revenue was primarily due to increased usage of SMS, ADS and wireless broadband. ADS, in particular, increased with growing penetration of mobile phones capable of handling advanced data services and a wider range of such service offerings from Maxis.
"Wireless broadband revenue grew from RM2.8 million in 2006 to RM127.5 million in 2008 due to an increase in the number of wireless broadband subscriptions from 4,000 as of Dec 31, 2006 to 140,000 as of Dec 31, 2008. The subscriber growth was attributable to the increase in the deployment of the wireless broadband network and greater product range offering by Maxis," it said.
Cash level
As at June 30, 2009, Maxis had deposits, cash and bank balances of RM1.88 billion of which RM1.817 billion were deposited with licensed banks. As at June 30, 2009, Maxis had unused bank guarantee facilities of RM146.6 million.
"The board of Maxis is of the opinion that after taking into consideration the existing level of cash and cash equivalents, the equipment and service suppliers’ credit, the banking facilities available and the expected funds to be generated from cash flows from operations, Maxis will have adequate working capital for a period of 12 months from the date of this prospectus," it said.
Background
To recap, MCB was granted telecommunications licences to operate a nationwide mobile network, a domestic fixed network and an international gateway in 1993, and commenced mobile telecommunications operations in August 1995 and fixed line and international operations in early 1996.
In June 2002, MCB launched an IPO of its shares, and was listed on the Main Board of Bursa Securities (then the Kuala Lumpur Stock Exchange) in July 2002.
In May 2003, MCB completed the acquisition of TIMECel Sdn Bhd (now known as Maxis Mobile Services). MCB launched its 3G service, in April 2005, and in September 2006, commenced using HSDPA, a high-speed upgrade of the 3G network, for a roll-out of consumer broadband services.
Following a voluntary general offer for all of the shares of MCB by Binariang GSM Sdn Bhd in May 2007. MCB was officially delisted from the Main Board of Bursa Securities in July 2007.
Friday, 18 September 2009 17:29
KUALA LUMPUR: Maxis Communications Bhd (MCB) plans to list its Malaysian operations Maxis Bhd (Maxis), under an initial public offering (IPO) which will involve 2.25 billion shares, of which 2.075 billion will be offered to institutions and the remaining 174.79 million shares for the public and its customers.
The IPO is set to be the country's biggest since 1995 and estimated by sources at US$2 billion, as investors rush to capitalise on booming stock markets, according to Reuters.
Currently, MCB is the beneficial owner of 7.5 billion shares, representing 100% of the paid-up of Maxis. It is the promoter of the listing exercise and selling shareholder.
MCB said in its exposure draft posted on the Securities Commission website on Sept 18 that it will hold 5.25 billion shares, representing 70% of the paid-up of Maxis after the IPO.
Subsidiaries
The subsidiaries to listed under 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.
The group was taken private in May 2007 by Binariang GSM Sdn Bhd. After the privatisation in 2007, the subsidiaries recorded combined revenues of RM6.95 billion and profit after tax (PAT) of RM2.10 billion for the financial year ended Dec 31, 2006 (FY06).
"They had recorded combined revenues of RM7.69 billion; RM8.45 billion and RM4.24 billion and PAT of RM1.98 billion; RM2.4 billion and RM1.14 billion for the two financial years ended Dec 31, 2008 and for the six months ended June 30, 2009 respectively.
"For each of those periods, the subsidiaries’ mobile operations accounted for over 90% of its combined revenues. In addition, the subsidiaries’ combined earnings before interest, tax, depreciation and amortisation (EBITDA) increased from RM3.74 billion for FY06 to RM4.4 billion for FY08," it said.
Mobile subscriptions, revenue
According to the financial information made available, as at June 30, 2009, Maxis had 11.4 million mobile subscriptions or 40% of estimated 28.5 million mobile subscriptions in Malaysia.
Maxis’ revenue grew by 21.5% from RM6.95 billion in 2006 to RM8.45 billion in 2008, primarily driven by mobile subscriber growth. During the period, Maxis’ mobile customers grew from 8.1 million from end-2006 to 11.2 million at end-2008, reflecting a compound annual growth rate (CAGR) of 18.0%.
"Correspondingly, revenue from mobile services, which contributed over 90.0% of Maxis’ revenue in all years, grew from RM6.53 billion in 2006 to RM7.86 billion in 2008, an increase of 20.4%," it said.
Maxis also operates a fixed line network and an international gateway, which offers voice and data services using fibre optic, microwave and satellite TECHNOLOGY [].
"The fixed line services and international gateway services generated revenue of RM170.5 million and RM251.4 million respectively for 2006 and RM203.7 million and RM380.0 million respectively for 2008. Revenue from fixed line services and international gateway services constituted 2.4% and 4.5% respectively of Maxis’ revenue for 2008," it said.
Mobile services revenue increased from RM6.53 billion in 2006 to RM7.86 billion in 2008 at a compound annual growth rate of 9.7%. Mobile services revenue was driven by higher voice usage fees, roaming partners and interconnect revenue and non-voice revenue, which in total was more than the decrease in other revenue.
Voice usage fees
Voice usage fees increased between 2006 and 2008 mainly due to more postpaid and prepaid subscriptions, and an overall increase in usage from Maxis’ own customers, partially offset by a decline in the price for such services.
"Maxis’ mobile customer base increased from 8.1 million subscriptions in 2006 to 11.2 million subscriptions in 2008. The share of voice revenue in total mobile services revenue declined from 61.8% in 2006 to 57.2% in 2008 as the growth in voice revenue was lower than other components of mobile services revenue, particularly non-voice revenue," it said.
MCB added roaming partners and interconnect revenue increased from RM783.6 million in 2006 to RM922.8 million in 2008 as a result of increases in interconnect revenue from RM581.6 million in 2006 to RM670.2 million in 2008 and roaming partners revenue from RM202.0 million in 2006 to RM252.6 million in 2008.
Non-voice revenue
Non-voice revenue increased from RM1.51 billion in 2006 to RM2.28 billion in 2008 at a compound annual growth rate of 23.0%. The share of non-voice revenue as a percentage of total mobile services revenue increased from 23.1% in 2006 to 29.0% in 2008.
The increase in non-voice revenue was primarily due to increased usage of SMS, ADS and wireless broadband. ADS, in particular, increased with growing penetration of mobile phones capable of handling advanced data services and a wider range of such service offerings from Maxis.
"Wireless broadband revenue grew from RM2.8 million in 2006 to RM127.5 million in 2008 due to an increase in the number of wireless broadband subscriptions from 4,000 as of Dec 31, 2006 to 140,000 as of Dec 31, 2008. The subscriber growth was attributable to the increase in the deployment of the wireless broadband network and greater product range offering by Maxis," it said.
Cash level
As at June 30, 2009, Maxis had deposits, cash and bank balances of RM1.88 billion of which RM1.817 billion were deposited with licensed banks. As at June 30, 2009, Maxis had unused bank guarantee facilities of RM146.6 million.
"The board of Maxis is of the opinion that after taking into consideration the existing level of cash and cash equivalents, the equipment and service suppliers’ credit, the banking facilities available and the expected funds to be generated from cash flows from operations, Maxis will have adequate working capital for a period of 12 months from the date of this prospectus," it said.
Background
To recap, MCB was granted telecommunications licences to operate a nationwide mobile network, a domestic fixed network and an international gateway in 1993, and commenced mobile telecommunications operations in August 1995 and fixed line and international operations in early 1996.
In June 2002, MCB launched an IPO of its shares, and was listed on the Main Board of Bursa Securities (then the Kuala Lumpur Stock Exchange) in July 2002.
In May 2003, MCB completed the acquisition of TIMECel Sdn Bhd (now known as Maxis Mobile Services). MCB launched its 3G service, in April 2005, and in September 2006, commenced using HSDPA, a high-speed upgrade of the 3G network, for a roll-out of consumer broadband services.
Following a voluntary general offer for all of the shares of MCB by Binariang GSM Sdn Bhd in May 2007. MCB was officially delisted from the Main Board of Bursa Securities in July 2007.