Maxis, together with its shareholder, Maxis Communications Berhad (MCB), are pleased to announce the pricing of its initial public offering (IPO). The institutional, cornerstone and Ministry of International Trade and Industry (“MITI”) tranches of the offering have been priced at RM5 per share while the retail tranche has been priced at RM4.75 per share, representing a 5% discount to the institutional price. The market capitalisation of the Company at the institutional price and its enterprise value will be RM37.5 (USD11.0) billion and RM42.5 (USD12.5) billion respectively.

Offering highlights:

• The IPO comprises 2,250,000,000 ordinary shares, or 30%, of Maxis, sold by MCB
• Total amount of funds raised is RM11.2 (USD3.3) billion
• Institutional offering book (excluding the offering to cornerstone investors and Bumiputera investors approved by MITI) was 3.7 times covered or equivalent to RM19.3 (USD5.7) billion comprising some 500 global investors
  

The results of the bookbuilding demonstrates strong demand from international and Malaysian investors

This IPO attracted orders of over RM26.5 (USD7.8) billion via its various tranches. The offering met with strong demand from international and Malaysian 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 (USD0.4) billion in Maxis shares, as well as sovereign wealth funds.

The institutional offering book (excluding the offering to cornerstone investors and Bumiputera investors approved by MITI) was 3.7 times covered and attracted a demand of RM19.3 (USD5.7) billion. The final shares offered through the bookbuilding exercise under the institutional offering will raise RM5.3 (USD1.6) billion, of which over USD800 million will be from foreign institutional investors.

The MITI and cornerstone tranches attracted total funds of over RM5.2 (USD1.5) billion for approximately 1 billion shares. The cornerstone investors are the Employees Provident Fund Board, Fidelity Funds-Malaysia Fund, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Berhad. 

The retail offering of 212.3 million shares attracted applications with a value of RM2.0 (USD0.6) billion for 381.2 million shares, which represents a subscription rate of 180%.  

Maxis is due to list its shares on the Main Market of Bursa Malaysia on November 19, 2009. The Maxis IPO will strengthen the Malaysian capital market. It has many firsts.

• Raising RM11.2 (US$3.3) billion, making it is the largest IPO in Malaysia history;
• It is the largest IPO ever in South East Asia; and 
• The largest telecommunications IPO in Asia Pacific since 2000.