Maxis Plans Malaysian Stock Market Listing

­Malaysia's Maxis Communications is floating 30% of its shares on the local stock market in a move that should raise around US$2.5 billion for its shareholders. The IPO is expected to be the largest in the country since for nearly fifteen years.

The mobile network will not gain anything from the sale as the sale is by the current shareholders to reduce their holdings in the company. The company was taken private by its current owners in 2007. Maxis is 75% owned by local billionaire, Ananda Krishnan, who took the company private two years ago via his privately Usaha Tegas holding company. The remaining 25% is own by state-owned Saudi Telecom.

Under Malaysian stock market rules, a company needs to sell a minimum 25 percent stake to list on the stock exchange. The report follows a call by Malaysian Prime Minister Najib Razak earlier this year for local companies to seek listings on the stock exchange to boost inward investment.

A couple of months ago it was also reported that France Telecom was looking at taking a stake in Maxis controlled Indian subsidiary, Aircel for between US$1.4-$2 billion. Aircel, which has a subscriber base of 19.6 million, is thought to have a valuation of between $7 billion and $8 billion.

On the web: Mobile World - Maxis

Posted to the site on 21st September 2009