Maxis Prices 300 Million New Placement Shares at MYR5.52 Each to Raise MYR1.66 Billion

By Yantoultra Ngui Features Dow Jones Newswires

KUALA LUMPUR, Malaysia--Malaysian mobile-phone operator Maxis Bhd. (6012.KU) has priced its 300 million new placement shares at the bottom end of a book-building range, according to a press statement on Tuesday.

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Maxis, controlled by Malaysian tycoon Ananda Krishnan, priced the shares at 5.52 ringgit ($1.29) each to raise MYR1.66 billion, which will be mainly used to reduce borrowings, the company said.

According to a term sheet seen by The Wall Street Journal on Monday, the book-building ranged between MYR5.52 ringgit and MYR5.75 each, representing a discount of up to 6.1% to MYR5.88, the price before trading in shares was suspended on Monday.

Maxis said its private placement has attracted demand from both local and foreign institutional investors.

Shares of Maxis resumed on Tuesday, declining as much as 6% to MYR5.53 in the morning before settling at around MYR5.63 at midday.

Analysts said on Tuesday that the placement was positive as it would put Maxis in a healthier financial position given potential obligations such as future spectrum-assignment fees, but it would dilute earnings on enlarged share base.

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-- Write to Yantoultra Ngui at yantoultra.ngui@wsj.com

(END) Dow Jones Newswires

June 20, 2017 00:50 ET (04:50 GMT)