UPDATE 4-Maxis set for $3.3 bln IPO in Asia share sale boom

By Julie Goh and Saeed Azhar KUALA LUMPUR/SINGAPORE, Nov 10 (Reuters) - Malaysia's biggest mobile phone operator Maxis Bhd is set to raise $3.3 billion in Southeast Asia's biggest ever initial public offering, as firms rush to take advantage of recovering markets. Maxis, together with China Minsheng Banking Corp and casino firm Sands China Ltd, will lead more than $10 billion in share sales in Asia, with more than 30 firms eyeing listings in either Hong Kong or India over the next few months. Asia has emerged as the world's top spot for companies tapping markets for funds this year as the region's economies inch out of recession, though the abundant supply is also keeping high price expectations in check. "It is entirely natural when you get a certain degree of recovery in markets, the floodgates open and the IPO market wakes up again," said Peter Elston, a strategist at Aberdeen Asset Management Asia in Singapore. "We are getting close to the year-end now, and the sensible bet would be that if you are a company it would be best to get your IPO done this year rather than next year." Maxis's offer of 2.25 billion shares, to be followed later this month by a $2 billion listing of CapitaLand's shopping mall trust in Singapore, would rank it in the top five stocks on Malaysia's benchmark index. "The lack of shares for public consumption has driven up demand," said Ikmal Hafizi, an analyst at Kuala Lumpur-based TA Research. "And fund managers needing to have exposure to benchmark stocks have no choice but to invest in Maxis." The listing comes just two years after Maxis was taken private by reclusive Malaysian billionaire Ananda Krishnan, who owns telecom assets in India and Indonesia. Ananda, ranked by Forbes magazine as Southeast Asia and Malaysia's second richest man, with $7 billion in assets, owns 45 percent of Maxis Communications.

Saudi Telecom owns 25 percent, and the rest is held by domestic funds in Malaysia. Based on a price of 5 ringgit a share, Maxis will have a market value of 37.5 billion ringgit ($11 billion) when it starts trading on Nov. 19, Maxis said late on Tuesday. "The listing of Maxis re-introduces a large capitalisation stock back onto Bursa Malaysia, and should increase the market capitalisation of the market by over 4 percent," said Maxis. PRICING WITHIN EXPECTED RANGE U.S. investment firm Fidelity and three Malaysian state pension funds will be cornerstone investors in the IPO. Maxis's price-to-earnings valuation of about 16 times would be the highest among Malaysian telecommunication firms. DiGi , which offers higher dividends, trades at of 14-15 times 2009 earnings per share, and Axiata, with regional growth exposure, trades at 13-14 times. Malaysian Prime Minister Najib Razak had asked Maxis, which controls 40 percent of the Malaysian mobile market, to re-list to boost liquidity and draw investors into the market. The listed company will house just the Malaysian business, leaving the fast-growing Indian and Indonesian operations with its unlisted parent Maxis Communications Bhd. Proceeds from the share offer will be used to reduce Maxis Communications' debt and fund operations in Indonesia and India. CIMB, Credit Suisse, Goldman Sachs , UBS, JP Morgan and Nomura are joint bookrunners for the deal. (Additional reporting by Soo Ai Peng; Editing by Anshuman Daga/Will Waterman) ($1=3.383 Malaysian Ringgit) (([e-mail]; [phone]; Reuters Messaging: [e-mail])) Keywords: MAXIS/ (If you have a query or comment on this story, send an email to [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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