Malaysia's Maxis has estimated it will make up to €2.26 billion from its debut today thanks to strong institutional demand.
The IPO comes two years after the company was taken private by Ananda Krishnan’s Binariang group.
Principal IPO adviser CIMB Investment Bank told investors that the minimum price of the shares had been raised to five ringgit (€0.98), compared to the earlier floor price of 4.80 ringgit.
“Any investors with limits below 5 ringgit should expect to miss the transaction,” CIMB said.
But the maximum indicative price has been reduced from 5.50 ringgit to 5.20 ringgit, as Maxis tightened its price range.
The company now expects to raise between €2.2 and €2.3 billion from the IPO, which will involve selling 30% of its existing share capital, sources told Reuters. This represents a price to earnings multiple of 16 times, based on FY09 figures.
More than 90% of the IPO – or 2 billion shares – is being offered to institutional investors.
Maxis is currently 45% owned by Krishnan, Malaysia's richest man. Saudi Telecom owns a 25% stake, and the rest is split among a number of domestic investment funds.
The IPO will include only Maxis' domestic operations, with its Indian and Indonesian units to remain under its unlisted parent Maxis Communications.