MCB said in its exposure draft posted on the Securities Commission website on Sept 18 that it is the beneficial owner of 7.5 billion shares, representing 100% of the paid-up of Maxis.

As the promoter of the listing exercise and selling shareholder, MCB will hold 5.25 billion shares, representing 70% of the paid-up of Maxis after the IPO.

According to Reuters, the IPO is set to be the country's biggest since 1995 and estimated by sources at US$2 billion, as investors rush to capitalise on booming stock markets.

The subsidiaries to listed under Maxis are Advanced Wireless Technologies, Maxis Asia Access, Maxis Broadband, Maxis Collections, Maxis International, Maxis Mobile, Maxis Mobile (L), Maxis Mobile Services, Maxis Multimedia, Maxis Online and UMTS.

MCB said after the privatisation in 2007, the subsidiaries recorded combined revenues of RM6.95 billion and profit after tax of RM2.10 billion for the financial year ended Dec 31, 2006 (FY06).

"They had recorded combined revenues of RM7.69 billion; RM8.45 billion and RM4.24 billion and PAT of RM1.98 billion; RM2.4 billion and RM1.14 billion for the two financial years ended Dec 31, 2008 and for the six months ended June 30, 2009 respectively.

"For each of those periods, the Subsidiaries’ mobile operations accounted for over 90% of its combined revenues. In addition, the subsidiaries’ combined EBITDA increased from RM3.74 billion for FY06 to RM4.4 billion for FY08," it said.

As at June 30, 2009, it had 11.4 million mobile subscriptions or 40% of estimated 28.5 million mobile subscriptions in Malaysia.

Between 2006 and 2008, Maxis’ revenue grew by 21.5% from RM6,957.1 million in 2006 to RM8,449.8 million in 2008, primarily driven by mobile subscriber growth. Maxis’ mobile customers grew from 8.1 million as at Dec 31, 2006 to 11.2 million as at Dec 31, 2008, reflecting a compound annual growth rate (CAGR) of 18.0%.

"Correspondingly, revenue from mobile services, which contributed over 90.0% of Maxis’ revenue in all years, grew from RM6.53 billion in 2006 to RM7.86 billion in 2008, an increase of 20.4%," it said.

Maxis also operates a fixed line network and an international gateway, which offers voice and data services using fibre optic, microwave and satellite TECHNOLOGY [].

"The fixed line services and international gateway services generated revenue of RM170.5 million and RM251.4 million respectively for 2006 and RM203.7 million and RM380.0 million respectively for 2008. Revenue from fixed line services and international gateway services constituted 2.4% and 4.5% respectively of Maxis’ revenue for 2008," it said.

According to the exposure draft mobile services revenue increased from RM6.53 billion in 2006 to RM7.86 billion in 2008 at a compound annual growth rate of 9.7%. Mobile services revenue was driven by higher voice usage fees, roaming partners and interconnect revenue and non-voice revenue, which in total was more than the decrease in other revenue.

Voice usage fees increased between 2006 and 2008 mainly due to more postpaid and prepaid subscriptions, and an overall increase in usage from Maxis’ own customers, partially offset by a decline in the price for such services.

"Maxis’ mobile customer base increased from 8.1 million subscriptions in 2006 to 11.2 million subscriptions in 2008. The share of voice revenue in total mobile services revenue declined from 61.8% in 2006 to 57.2% in 2008 as the growth in voice revenue was lower than other components of mobile services revenue, particularly non-voice revenue," it said.

MCB added that roaming partners and interconnect revenue increased from RM783.6 million in 2006 to RM922.8 million in 2008 as a result of increases in interconnect revenue from RM581.6 million in 2006 to RM670.2 million in 2008 and roaming partners revenue from RM202.0 million in 2006 to RM252.6 million in 2008.

Non-voice revenue increased from RM1.51 billion in 2006 to RM2.28 billion in 2008 at a compound annual growth rate of 23.0%. The share of non-voice revenue as a percentage of total mobile services revenue increased from 23.1% in 2006 to 29.0% in 2008.

The increase in non-voice revenue was primarily due to increased usage of SMS, ADS and wireless broadband. ADS, in particular, increased with growing penetration of mobile phones capable of handling advanced data services and a wider range of such service offerings from Maxis.

"Wireless broadband revenue grew from RM2.8 million in 2006 to RM127.5 million in 2008 due to an increase in the number of wireless broadband subscriptions from 4,000 as of Dec 31, 2006 to 140,000 as of Dec 31, 2008. The subscriber growth was attributable to the increase in the deployment of the wireless broadband network and greater product range offering by Maxis," it said.

As at June 30, 2009, Maxis had deposits, cash and bank balances of RM1.88 billion of which RM1.817 billion were deposited with licensed banks. As at June 30, 2009, Maxis had unused bank guarantee facilities of RM146.6 million.

"The board of Maxis is of the opinion that after taking into consideration the existing level of cash and cash equivalents, the equipment and service suppliers’ credit, the banking facilities available and the expected funds to be generated from cash flows from operations, Maxis will have adequate working capital for a period of 12 months from the date of this prospectus," it said.

To recap, MCB was granted telecommunications licences to operate a nationwide mobile network, a domestic fixed network and an international gateway in 1993, and commenced mobile telecommunications operations in August 1995 and fixed line and international operations in early 1996.

In June 2002, MCB launched an IPO of its shares, and was listed on the Main Board of Bursa Securities (then the Kuala Lumpur Stock Exchange) in July 2002.

In May 2003, MCB completed the acquisition of TIMECel Sdn Bhd (now known as Maxis Mobile Services). MCB launched its 3G service, in April 2005, and in September 2006, commenced using HSDPA, a high-speed upgrade of the 3G network, for a roll-out of consumer broadband services.

Following a voluntary general offer for all of the shares of MCB by Binariang GSM Sdn Bhd in May 2007. MCB was officially delisted from the Main Board of Bursa Securities in July 2007.

Source:
http://www.theedgemalaysia.com/business-ne...-under-ipo.html

PETALING JAYA: Goldman Sachs Group Inc has initiated coverage on telecommunications service provider Maxis Bhd with a discounted cashflow-based target price of RM5.20 per share and a “neutral” call.

Goldman Sachs was one of a number of foreign investment banks together with CIMB Investment Bank Bhd that were involved in the institutional book-buiding exercise for Malaysia’s and South-East Asia’s largest ever initial public offering at US$3.3bil this year. It was also the lead arranger.

Goldman Sachs analysts led by Helen Shu said in a report that the capital-intensive nature of the business, with cycles of investment, implied a 4% potential downside risk for the share price since it could skew any one year’s financials or free cashflows.

She said Maxis’ price-to-earnings ratio were at par with the company’s local peers and other large caps but were slightly above the average/median for regional peers, given that the Malaysian market as a whole is traded at a slight premium to the Asia-wide coverage.

However, Shu believes that the company’s share price would benefit from strong support from its standout dividend yield.

“We’re estimating a dividend per share of 41 sen to 47 sen for 2010 to 2012 based on a combination of regular quarterly dividends and likely additional cash returns for a total estimated payout ratio of 125% for 2010 to 2012,” she said.

Shu added that the estimated 8% yield for 2010 to 2011 put the company in the top among regional peers in terms of yield and a standout versus large-cap local stocks where the 2010 current estimated market average yield is 4%.

http://biz.thestar.com.my/news/story.asp?f...38&sec=business