QUOTE(lukeraj @ Nov 3 2009, 10:29 AM)
Hope there is light end of the tunnel with Maxis, no doubt its a well managed company and profitable, my concern is the the fund raised would not be used for international maxis investment wonder how will this fund will be diversified to have maximum returns to shareholders, there will so much of cash reserve with maxis and the benefits goes back to the owner of the company, and as mention malaysia is saturated can some smartie provide some input for me please n why do you see its a good buy ,short term and long term expected impact , sorry for 2 cents enquiry
The IPO proceeds will not go to Maxis but to the offerers of the shares, AK n others.
As I said earlier, post IPO Maxis will be heavily in debt to the tune of RM5 billion, experience little growth and slowly losing market share. It will have to upgrade its infrastructure substantially to capture the broadband market share as its broadband services are far from satisfactory. It will face stiff competition from Telekom which will roll out HSB in the Klang valley next year.
However, its saving grace is that it will be included as one of the component stocks of the Composite Index.
Investors, most probably will not make a loss but will make a small profit. So no harm applying.
It is probably a stock for the long term.