The government's 5G Task Force's intention to resolve DNB's access agreements led to Maxis agreeing to sign up sooner than later.

Maxis 5G will be sooner rather than later.Source: Shutterstock

Malaysia: Wireless carrier Maxis aims to raise $384m in share offering

MALAYSIAN wireless carrier Maxis Bhd has said it wants to raise RM1.64 billion (US$384 million) via a 300 million share offering, reports Reuters.

The company is believed to be seeking a cash injection to help cut some of its debt, as well as fund a potential new mobile phone spectrum and expansion.

The company issued a bourse filing on Monday afternoon which said it planned to issue 300 million new shares in a private placement, representing four percent of the total number of issued shares.

However, the actual proceeds to be raised can only be determined after the bookbuilding exercise for the placement, it said.

It said its indicative issue price for exercise was RM5.47 apiece, assuming a 10 percent discount to the volume weighted average market price of Maxis shares for the five market days immediately leading up to the date of book building.

The company also wants an equity fund-raising exercise to help reduce part of the group’s existing borrowings.

“This will also create financial flexibility for the Maxis Group to fund its future spectrum assignment fees, expansion plans and its growth strategy should the opportunities arise,” it said.

Earlier on Monday, the company had requested trading of its shares to be halted, pending a material announcement.

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The new shares will increase Maxis’ free float to 37.1 percent from 35.1 percent, reports Reuters.

CIMB Group Holdings Bhd and Credit Suisse were hired as joint bookrunners for the offering.