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Maxis Communications Bhd, Malaysia’s dominant mobile operator, plans to list its Malaysian business, Maxis Bhd, in the year’s most anticipated initial public offering (IPO) which will offer 2.25 billion shares for sale.

In its draft prospectus posted on the Securities Commission‘s website Friday, Maxis Bhd said of the shares, 2.07 billion shares would be offered to institutional investors and 174.975 million shares to retail investors. The listing will give the company the financial flexibility to pursue growth opportunities and enhance its profile, among other things.

Upon completion of the IPO, Maxis Communications Bhd’s stake in Maxis Bhd will be reduced to 70 per cent. Tycoon T. Ananda Krishnan currently controls 75 per cent of Maxis Bhd, while Saudi Telecom Co owns the balance.
Maxis Bhd, according to the draft prospectus, saw net profit rise 21.23 per cent to RM2.4 billion last year. In the first half of this year, its net profit declined 9.4 per cent. Revenue rose 9.8 per cent to RM8.45 billion last year. In the first half of 2009, it was up 4.3 per cent to RM4.24 billion. In the six months to JUNE 2009, it had 11.42 million subscribers comprising 8.52 million prepaid, 2.73 million post-paid and 171,200 wireless broadband users.

Maxis’ business comprises three business segments — mobile services, fixed line services and international gateway services. The IPO comes after Prime Minister Datuk Seri Najib Razak, in a media briefing during a working visit to Saudi Arabia some two months back, had urged the firm to be relisted on Bursa Malaysia to boost liquidity in the local stock market and help in efforts to draw in more investors.

The offer price will be determined after a bookbuilding exercise. CIMB, Credit Suisse and Goldman Sachs are joint bookrunners for the IPO. It is understood investment bankers are aiming for the IPO to be ready – meaning submission and approvals done – in order to start on its book building roadshow possibly after Hari Raya towards the end of next month. The listing was expected to happen by year-end.