Saturday, July 25, 2009

Maxis to consider PM’s suggestion on relisting

KUALA LUMPUR: Maxis Communications Berhad will consider relisting soon following the suggestion by the Prime Minister for the company to relist on Bursa Malaysia.

A company spokesperson said in a statement released Saturday that a further announcement will be made at the appropriate time.

She said Datuk Seri Najib Tun Razak had asked the stakeholders of Maxis to consider the possibility of seeking a re-listing of Maxis on Bursa Malaysia to assist in the Government’s overall efforts to enlarge the market capitalisation of the exchange and range of large companies that attract institutional investor interest.

“When Maxis was privatised and de-listed in 2007, the stakeholders articulated the possibility of a re-listing of the company after internal re-structuring, some time in the future,” she said.

It is learnt that the initial public offer (IPO) may be launched as early as October and the company may be listed by the end of the year.

CIMB Investment Bank may be appointed to manage the IPO.

Sources said the listing is likely to be only for its Malaysian operations.

Maybank Investment Bank senior analyst Khair Mirza welcomed the move saying it was positive for the markets.

“Maxis needs a legitimate reason to return to the stock market and the call by the Prime Minister is timely.

“When it would be listed remains to be seen,” Khair said.

Last Thursday, Najib urged Maxis, the mobile-phone company bought out by T. Ananda Krishnan in 2007, to re-list in Kuala Lumpur to attract investors to the exchange.

Maxis, 25%-owned by Saudi Telecom Co, was assessing the proposal, Najib had said after returning from the Middle East.

“It has been conveyed to the management and they are considering it very seriously. Hopefully, it will happen fairly soon,’’ said Najib.

Maxis first sold shares in Malaysia in 2002. Before the company was taken private in June 2007, it was valued at about RM40bil on the stock exchange.

In its listing in 2002, Maxis shares were sold to institutional investors at RM4.85 each and retail investors at RM4.36. On its last day of trading in July 2007, the shares were traded at RM15.20 each.

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