KUALA LUMPUR, Malaysia--Malaysian mobile-phone operator Maxis Bhd. (6012.KU) is selling 300 million new shares that could raise up to $403 million, according to a term sheet seen by The Wall Street Journal on Monday.
The shares will be priced between 5.52 ringgit ($1.29) and MYR5.75 each, the term sheet showed, representing a discount of up to 6.1% to the closing price of MYR5.88 on Friday. The new shares represent 4% of its existing share capital.
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Maxis plans to use the proceeds to reduce part of existing borrowings and create financial flexibility to fund future spectrum assignment fees, the term sheet showed.
The company also plans to use the funds for expansion and growth strategies, according to the term sheet.
Officials at Maxis weren't immediately available for comment.
Maxis said earlier Monday that its shares were suspended from trading Monday pending a material corporate announcement.
Shares of the company, which is controlled by Ananda Krishnan, have dropped 1.7% so far this year. Mr. Krishnan is Malaysia's third-richest man, according to Forbes.
CIMB and Credit Suisse are the joint bookrunners for the deal, according to the term sheet.
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(END) Dow Jones Newswires
June 18, 2017 23:06 ET (03:06 GMT)