Malaysia's Maxis IPO set to raise over $3.3 b

Maxis Bhd, Malaysia's biggest mobile phone operator, looks set to raise over $3.3 billion in its initial public offering, the biggest IPO in Southeast Asia for more than a decade.

The institutional book which included funds such as Fidelity, Aberdeen and Malaysia's biggest pension fund was "well covered" at above 5.00 ringgit a share, sources with knowledge of the matter told Reuters on Monday.

"The institutional portion is definitely oversubscribed by more than two times for above 5.00 ringgit," said one source from one of the banks involved in the deal.

This means the IPO could raise between 11.25 billion Malaysia ringgit ($3.31 billion) to 11.7 billion ringgit for its parent which is selling 30 percent of its existing share capital to reduce debt and finance operations in India and Indonesia.

Last month, Maxis said it had secured four cornerstone investors who will buy 28 percent of the offer.

Maxis is offering 2.25 billion shares in a re-listing targeted for Nov. 19. Maxis is hoping to price the share offering at between 5.00 ringgit and 5.20 ringgit a share, against an earlier indicative price of between 4.80 ringgit and 5.50 ringgit each, said the sources.

The shares are expected to be priced on Tueday upon closing of the institutional book-building later on Monday.

CIMB, Credit Suisse, Goldman Sachs are the joint global coordinators and are joint bookrunners with JP Morgan, Nomura and UBS for the deal.

KUALA LUMPUR/SINGAPORE, Reuters