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Maxis is a Good Stock to Hold: Analyst

Malaysia's top mobile provider Maxis, of which shares made a strong debut on Thursday, is a good stock to hold, said Manoj Menon, Asia Pacific partner & MD at Frost and Sullivan.

"It is a fairly good stock which is a percentage of the overall market for Malaysia. So anybody who wants to have an exposure to the Malaysian market, I think, would find it a stock worth participating and holding," Menon told CNBC.

The $3.3 billion IPO, which climbed as much as 15% at the open on the Kuala Lumpur Stock Exchange, is Southeast Asia's biggest offering, and comes just two years after Malaysian billionaire Ananda Krishnan took Maxis private in a 40 billion ringgit ($11.9 billion) deal.

"I think they have done a very good job in terms of getting the timing absolutely right. They delisted at the right time, they have got it listed back at a great time."

Some analysts were worried about the company's growth prospects as this new listing consists of only its Malaysian business, excluding the fast-expanding units in India and Indonesia.

But Menon believes Maxis will still benefit from further growth in the telecommunications sector as a whole.

"If you look at telecommunications as an industry, they have weathered this economic downturn relatively much better than maybe several other industries, at least the service providers. (As for) the Malaysian market, we are seeing in the last maybe 12 months or so, there has been very, very good growth in the mobile broadband space," he noted.

"We are seeing (in) the last quarter that mobile broadband sub-additions are greater than even fixed line additions in many markets, so that potentially represents a very good growth opportunity."