SINGAPORE/KUALA LUMPUR: Malaysia’s biggest mobile phone operator, Maxis Communications Bhd, plans to raise US$2bil in a public offering later this year, underscoring the revival of Asian initial public offerings (IPOs) as equity markets rebound.

The offering, which could be the biggest in Malaysia since 1995, comes just two years after Maxis was taken private by its reclusive billionaire owner, tycoon Ananda Krishnan, who owns telecom assets in India and Indonesia.

Two sources told Reuters that Maxis had chosen Goldman Sachs, Credit Suisse and CIMB to advise it on a listing in Kuala Lumpur. Under Bursa Malaysia rules, a company needs to sell a minimum 25% stake to list on the stock exchange.

“It will create some sort of excitement because it was the darling of investors then and it had substantial foreign shareholdings too,” Abdul Jalil Rasheed, equities chief at Aberdeen Asset Management’s Malaysia unit said yesterday.

The move comes after Prime Minister Datuk Seri Najib Tun Razak last month asked Maxis to relist on Bursa Malaysia to boost liquidity and draw in investors to South-East Asia’s most laggard stock market so far this year.

Goldman Sachs, Credit Suisse and CIMB declined comment on the share sale plans. The sources declined to be identified because details of the deal are not public.

“There is no announcement at this point. An announcement will be made at the appropriate time,” Catherine Leong, Maxis’ head of public relations, told Reuters when asked for a comment.

IPOs have sprung back to life in booming markets in Asia, led by China after new share offerings ground to a halt last year due to the meltdown in markets.

Some analysts said Maxis could be looking to raise money as it seeks to fund capital expenditure (capex) required by its 74%-owned Indian unit Aircel.

“With such huge capex, perhaps Maxis has found itself geared to the limit and needs to turn to capital markets for funds,” ECM Libra said in a research note.

Maxis said in March it was planning to invest US$5bil over the next three to five years to accelerate Aircel’s cellular coverage expansion in India.

“Now is probably a good time for Maxis to be relisted. With that kind of size, the stock will provide the kind of liquidity investors were looking for,” said Aberdeen’s Rasheed.

The listing would be the biggest since the US$1.1bil listing by Petronas Gas Bhd in Malaysia in 1995.

Krishnan, ranked by Forbes Magazine as Malaysia’s second-richest man at US$7bil, controls 75% of Maxis. The rest is owned by state-owned Saudi Telecom Co Ltd.

Krishnan also owns pay-television operator Astro All Asia Networks plc and Tanjong Plc, a power and gaming group, and satellite operator Measat Global Bhd, through his investment vehicles.

Shares in Astro and Measat have risen 8% and 10% respectively since June 4 when market talk first emerged Maxis will be relisted through one of the companies. — Reuters