Tuesday, May 30, 2023

Maxis makes a comeback

Comment by Goh Thean Eu of Business Times

Maxis in spotlight as it stages comeback on Bursa

Maxis Bhd, the country’s largest mobile operator, will come under the spotlight tomorrow when its shares are relisted on Bursa Malaysia after two years.

Although its path to a relisting has not been smooth, most investors are expected to put their “issues” aside and try to get a piece of the stock.

“It is hard to ignore Maxis. Fund managers would want a piece of Maxis, as it would be included as a KLCI component stock. They can’t afford to lose out,” said an analyst who declined to be named as his firm is partly involved in the Maxis relisting exercise.

In the events leading up to its relisting, some institutional investors were reportedly unhappy over the amount of Maxis shares allocated to them. In some cases, they were allocated only 5 per cent of what they have initially applied for.

Sources said insurance funds were given slightly higher allocation, as they are unlikely to sell the shares over the short term.

Maxis will raise over RM11 billion in the initial public offering (IPO), touted to be the largest in Southeast Asia.

Maxis chose to list its shares at a time when mobile penetration is saturated and the mobile market is flooded with new players like Tune Talk and XOX.

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Kugan is the co-founder of MalaysianWireless. He has been observing the mobile industry since 2003. Connect with him on Twitter: @scamboy

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