Good news indeed.

But with the listing of Maxis, I wonder which stock will be kicked out from KLCI30.

The last transaction of Maxis mean nothing for newly IPO, as Maxis can issue more share or having different sturcture for the listing which the details is yet to be known.

Share price mean nothing, if they issue more or having low par value, then share price will be lower, just like what Airasia did, instead of mostly par value at Rm1, Airasia issued the par value at Rm0.10, so it's IPO become Rm1.xx. If it is Rm1 par value, then it is Rm1x.xx

Could be, if not mistaken, one of the reason why Maxis is taken private previously is want to get rid of other investors, by then they have more flexibility in term of capital access while whatever decision made can be done via they own wish, doesn't need to go through shareholder mandate or answer to them.
So with the response of PM calls, it list its Malaysia operation business only, instead of MCB which is taken private previously.

We don't know the actual reason, no one will disclose it unless there is full access to the company issue, which for a private company, they don't need to disclose it. But they must have their own good reason and consideration why they don't want to list MCB.

Malaysian Operations is stable but still have some growth, but surely won't as much as other booming or lowly tapped market. It still has some room to grow, as long as there is population and economy growth.

If it is only Malaysia operation, then it means it is like TM and Axiata, which TM become a good and purely dividend stock but growth rate become lesser or little, so the Maxis structure could be identical which they separate out the international business and local.

International business can have lot of room to grow, but it doesn't come without risk. In fact, the major risk is come from financing issue, as lot of capital needed.

The downside of the proposal is that the parent company holds 70% of Maxis Malaysia which could affect its liquidity issue.

It is a bit dissapointment that they only list Maxis Malaysia, instead of MCB, but it is better than none. KLSE simply lack of this kind of company to attract more investors as well as more options for real solid company that can bring benefits to investors.

I bet 99% chance it will oversubsribed, because the public portion is very little only compared to its overall company size.


175 million for public and customers is lower end of IPO size for such a reputable, branded company.

A issue I need to raise, so that people not confuse.

Previously the company which being privatised one is Maxis Communication, MCB, the parent company. Now the one will go through the IPO one is Maxis Malaysia, one of MCB business.

So it is totally different than Maxis which being privatised previously.
It is Maxis Malaysia, not Maxis Communication.

1) It is only for purely dividend play, as growth rate is minimal, as same as TM

2) Malaysia has HP penetration rate is about 110% already (HP > population), so near matured and saturated state, further growth rate is about population growth and economy growth. So there is little need to further expansion and capex, except for newer tech come in which need for major upgrade across which in near future is highly unlikely. Population is the major issue which is the upper cap of your potential customers as well as per capital income.
That's why a lot of large cap company (even in financial), has ventured to overseas to look for more growth.

3) 2009 surely has impact on all across (it is norm to see any company register a dip in revenue and profit side), as recession kick in as well as lot of foreigner workers being sent back. (Foreigner workers also are one of chunck of prepaid business)

5) If it turns out to be 7.7% yield with consistency, it is still a reasonable dividend stock especially for large cap stocks. But share price wise won't be too exciting, may be just like Guiness type of movement but if treat it as old man stock to collect dividend only, still is a choice.

My view,
I don't think that's the main point (yes, it could but more on secondary) of the privatisation previously.

The previous privatisaiton (or most privatisation) is to get rid of others shareholders so that they can do whatever they want on the company level whether fund transferring or some decision which might not agreed by other shareholders. If company doesn't need fund or financing, then yes, any privitisation make sense, but not for MCB.

Imagine if without privatisation if MCB transferred all the fund from Malaysia operation to fund India market operation and not giving a single cent dividend to the existing shareholders, surely others shareholders will raise skeptism on it even though India operation might be have good future. By then you have a lot of shareholders object the move which could jeopardise the India operation/venture

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Added on September 22, 2009, 12:07 amIf EPS is 30 cents, IPO price should't more than RM3.xx.

If RM5-6 range at EPS 30 cents with little growth, it is an expensive IPO, not advisable to go in anymore, as it means PER of 20x with little growth which doesn't sound right.
Just my view, I might be wrong.

This post has been edited by cherroy: Sep 22 2009, 12:07 AM

I raised this issue, because any price of MCB privatisation last time or how much was MCB price is irrelevant to current Maxis Malaysia issue as some forumers keep on asking back how much MCB price was.

Price is never an issue, and not a gauge of any valuation because it depended how much share being issued.

It is the ability of earning in term of EPS that determine how IPO price or a share price should be.

Just like Airasia share is issued at Par value of Rm0.10, so IPO price become RM1.xx.

It has been reported that Maxis aims to give 75% of its profit made as dividend.

Indeed, actually TM could be better bet for dividend if nothing goes wrong.

Axiata has good growth, but it is surrounded by enormous debt issue as always.

CDS can be activated/used as fast as next business day or 2 days only.

I don't know about M2U issue, never use before, nor apply IPO nowadays. I don't like nominee service anyway, due to less inefficiency than direct account, just my preference.

Should be still valid for opening CDS account issue for non-CDS successful applicants, check with our fellow remisier for confirmation.

You violate the T&C of blue form IPO if you pass to others and they can reject the application. Sorry I don't know how or details is the blue form issue but surely it violates the T&C or the purpose of the blue form, unless they stated the blue form is renounceable, which I don't think so.

Why not open one? just Rm10 only, and as easy as open a bank account only.

If you have OSK CDS, you can only buy and sell through OSK, you cannot use other investment brokers to sell your OSK's CDS shares.

Every CDS account is attached to a particular broker.

You can have 10 CDS account, but all cannot cross-linked with each other.

Yes, can do, but you need to go to the respective investment firm yourself to carry the transfer, they need to verify and some minimal cost (transfer fee) incurred.

Also Maybank is not an investment bank aka M2U is carrying nominee account type, not direct account type.

Nominee account doesn't have CDS. Those share are directly owned by M2U (behalf on you) as compared to direct account type like OSK which share is directly owned by you.

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Added on October 31, 2009, 11:36 amHad been asked, check earlier posts.

Technicallly, and legally, cannot.

This post has been edited by cherroy: Oct 31 2009, 11:36 AM

Ordinary bank won't carry direct account, it is the investment bank, securities firms that are carrying direct account.

Both Maybank and Public bank has their respective investment bank, which is their subsidiaries but under different entity, which cannot cross-linked on each others.

So check with your respective brokers for clarification.


From my experience, acccount activated as soon as next business day.

No logic for it to go beyond Rm10 with EPS of 30 cents.

Max around 6-7 only, just my guess, I could be wrong, as market sometimes can act illogically one due to human sentiment.

If the listed Maxis is including overseas one, then yes, it could go beyond Rm10.

Don't compared the previous privatised Maxis with current IPO Maxis. They are different entity.

Previously privatised Maxis is including every Maxis business. Now is Maxis (Malaysia) only.

Just the name is Maxis, doesn't mean it is the same company.

Yes, somehow the purpose of privatisation of previous Maxis is about oversea business venture issue. <-- which most analysts agree on although AK never reveal the main intention of it publicly.

Yes, there is no mandatory to open trading account with CDS. You can open CDS alone.

No, you cannot have CDS in A then trade at B.

No, you cannot activate on behalf. The account holder must personally activate it.

The actual name is call-warrant.