Maxis to raise RM1.64b via private placement

PETALING JAYA: Maxis Bhd is expected to raise RM1.64 billion through its proposed private placement of 300 million new shares based on an indicative issue price of RM5.47 per share.

Proceeds raised will be used to repay bank borrowings and related incidental costs.

The telco giant told Bursa Malaysia the new shares will be issued to investors to be identified via book-building. The issuance represents about 4% of the group’s total number of issued shares as at June 16.

The precise terms and conditions such as the identity of the placees, number of placement shares to be allocated and the issue price for the placement shares will only be determined upon completion of the book-building exercise.

The proposed private placement is pursuant to the shareholders’ mandate obtained at Maxis’ AGM held on April 26 under Sections 75 and 76 of the Companies Act, 2016.

Maxis said the proposed private placement is to strengthen the group’s financial position by reducing part of its existing borrowings.

“The benefits of this will include enhanced cash flows, liquidity, interest costs savings and improved gearing levels,” it noted.

This will also create financial flexibility for the group to fund its future spectrum assignment fees, expansion plans and its growth strategy should the opportunities arise.

After due consideration of the amount intended to be raised, optimal timing and available funding options, Maxis said the board opines that the proposed private placement is currently the most appropriate means of equity fund-raising.

It allows the group to raise funds expeditiously; the book-building process will allow efficient price discovery and competitive pricing based on investors’ demand; and it potentially attracts more local and international institutional investors, thereby enlarging its shareholders’ base and potentially enhancing the liquidity of its shares.

The private placement is expected to be completed by the end of July.