Business

Friday October 23, 2009

EPF likely to get discount for Maxis shares


PETALING JAYA: The Employees Provident Fund (EPF) is more likely to get a discount rather than having to pay a premium for a block of shares in soon-to-be-listed Maxis Bhd, sources told StarBiz.

It had been reported that the EPF was being asked to pay RM5.20 a share for a block of 100 million shares in Maxis, despite a possibility that Maxis could be floated at a lower price.

To be sure, no price has been determined yet as a book-building exercise is on-going but persons familiar with the exercise say that the indicative price is between RM4.80 and RM5.50.

It is understood a few anchor investors have already been identified and that the EPF is one of them.

“Anchor investors typically will get a small discount (over the initial public offering price) but the trade-off is that they will be locked in a (share sale) moratorium for some time,” explained a source familiar with the deal.

Due to its leadership position in the local mobile telephony market, its healthy profit margins and decent dividend offerings, Maxis fits nicely into the investment criteria of funds like the EPF.

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Maxis is expected to pay 85% of net profit as dividends

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