Sell us 5.20 but sell them 4.75.
Macam ini pun boleh.
Written by Cindy Yeap
Wednesday, 11 November 2009 07:57
KUALA LUMPUR: The stage is set for Malaysia’s and South East Asia’s biggest ever IPO that will raise RM11.2 billion (US$3.3 billion) for its vendors, with the final selling price for Maxis Bhd fixed at RM5 per share for institutions and RM4.75 for retail investors on Tuesday, Nov 10.
The final institution price of RM5 is at the lower end of the RM4.80 and RM5.50 range initially indicated to investors, who had been playing hardball in securing enough upside for themselves as they weigh the top mobile operator’s dividend paying ability versus its growth potential in a highly competitive market.
Even so, indications are the final prices by no mean spell languid demand for Maxis shares, whose debut on the Main Market on Nov 19 is also aimed at raising the local equity market’s profile among international investors.
“Based on our experience and what we gather from the market, there is a sizeable unfulfilled order from local institutions. Our allocation was only 5% of the amount we asked for… Fund managers, who are benchmarking against the KLCI, may decide to buy more Maxis shares from the open market, given that it is included almost immediately as an index constituent,” TA Investment Management chief investment officer Choo Swee Kee told The Edge Financial Daily.
Maxis said the IPO attracted orders of over RM26.5 billion (US$7.8 billion) in total and institutional investors (excluding cornerstone and MITI-approved Bumiputera investors) had asked for 3.7 times the amount of shares allocated to them, eliciting demand worth RM19.3 billion from some 500 global investors.
“The bookbuilding exercise attracted significant foreign interest, from leading institutional investors who have had a history of investing in Malaysia and including a number who are returning, 10 new institutional investors to Malaysia with orders of RM1.3 billion in Maxis shares, as well as sovereign wealth funds,” Maxis said.
Funds from foreign institutions made up “over US$800 million” or just over half of the RM5.3 billion (US$1.6 billion) raised in total from the institutional offering.
The MITI and cornerstone tranches attracted total funds of over RM5.2 (US$1.5) billion for approximately one billion shares, Maxis said. Retail investors had asked for 381.2 million shares or 1.8 times the 212.3 million shares allocated to them, it added.
“I am delighted with the response to the offering from all investors. We believe the strong support shown for Maxis reflects its position as Malaysia's leading telecommunications provider.
"Today's announcement marks an important milestone in the development of Maxis and supports the company's plans to focus on developing and growing its operations. With our strong management team and dedicated workforce, we look to the future with confidence,” Maxis chairman Raja Arshad Raja Tun Uda said in the statement.
Macam ini pun boleh.
Written by Cindy Yeap
Wednesday, 11 November 2009 07:57
KUALA LUMPUR: The stage is set for Malaysia’s and South East Asia’s biggest ever IPO that will raise RM11.2 billion (US$3.3 billion) for its vendors, with the final selling price for Maxis Bhd fixed at RM5 per share for institutions and RM4.75 for retail investors on Tuesday, Nov 10.
The final institution price of RM5 is at the lower end of the RM4.80 and RM5.50 range initially indicated to investors, who had been playing hardball in securing enough upside for themselves as they weigh the top mobile operator’s dividend paying ability versus its growth potential in a highly competitive market.
Even so, indications are the final prices by no mean spell languid demand for Maxis shares, whose debut on the Main Market on Nov 19 is also aimed at raising the local equity market’s profile among international investors.
“Based on our experience and what we gather from the market, there is a sizeable unfulfilled order from local institutions. Our allocation was only 5% of the amount we asked for… Fund managers, who are benchmarking against the KLCI, may decide to buy more Maxis shares from the open market, given that it is included almost immediately as an index constituent,” TA Investment Management chief investment officer Choo Swee Kee told The Edge Financial Daily.
Maxis said the IPO attracted orders of over RM26.5 billion (US$7.8 billion) in total and institutional investors (excluding cornerstone and MITI-approved Bumiputera investors) had asked for 3.7 times the amount of shares allocated to them, eliciting demand worth RM19.3 billion from some 500 global investors.
“The bookbuilding exercise attracted significant foreign interest, from leading institutional investors who have had a history of investing in Malaysia and including a number who are returning, 10 new institutional investors to Malaysia with orders of RM1.3 billion in Maxis shares, as well as sovereign wealth funds,” Maxis said.
Funds from foreign institutions made up “over US$800 million” or just over half of the RM5.3 billion (US$1.6 billion) raised in total from the institutional offering.
The MITI and cornerstone tranches attracted total funds of over RM5.2 (US$1.5) billion for approximately one billion shares, Maxis said. Retail investors had asked for 381.2 million shares or 1.8 times the 212.3 million shares allocated to them, it added.
“I am delighted with the response to the offering from all investors. We believe the strong support shown for Maxis reflects its position as Malaysia's leading telecommunications provider.
"Today's announcement marks an important milestone in the development of Maxis and supports the company's plans to focus on developing and growing its operations. With our strong management team and dedicated workforce, we look to the future with confidence,” Maxis chairman Raja Arshad Raja Tun Uda said in the statement.
