Maxis to raise up to RM1.7b from share placement

KUALA LUMPUR: Maxis Bhd could raise up to RM1.72bil from its proposed placement of 300 million shares at prices ranging from RM5.52 and RM5.75 each.

Bloomberg reported on Monday the price for the share placement was 2.2% to 6.1% below the last closing price of RM5.88. This would see the telco raising between RM1.65bil to RM1.72bil.

It said the term sheet showed the shares represented 4% of existing share capital. Credit Suisse and CIMB are joint bookrunners.

Recall that at its AGM on April 26, Maxis received shareholders’ approval to issue up to 10% of its share base.

It was understood the funds would be would be used to pare down its net debt/earnings before interest, tax, depreciation and amortisation which was two times in the first quarter of 2017.

Other possibilities would be that the  funds would for the 700MHz spectrum payment, which may be allocated in 2018F, and investments in adjacent businesses.

Later, Maxis announced that the share placement would be carried out via a book-building exercise on Monday. 

"The precise terms and conditions for the placement shares will only be determined upon completion of the book-building exercise. 

"We expect the private placement to be completed by end of July 2017," it said. 

"The equity fund-raising exercise is expected to strengthen Maxis Group’s financial position and will give us the flexibility to fund our future spectrum assignment fees and growth strategy," it added.