Maxis to raise up to RM1.73b through share placement

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KUALA LUMPUR (June 19): Maxis Bhd, the second largest cellular service operator by subscriber base in Malaysia, intends to place out 300 million new shares which is equivalent to 4% of its existing 7.51 billion share capital, to raise up to RM1.73 billion.

According to a term sheet sighted by theedgemarkets.com, these new shares will be priced between RM5.52 and RM5.74 per share, equivalent to 2.2% to 6.1% discount to Maxis' closing price of RM5.88 last Friday (June 16).

The term sheet shows that the proceeds will be used for paring down bank borrowings, future spectrum assignment fees funding, expansion plan and growth strategies should opportunity arise.

Maxis shares have been suspended from trading since this morning. In the announcement to Bursa Malaysia this morning, the telco said the trading suspension is pending on the release of a material announcement.

Maxis has a market capitalisation of RM44.16 billion at its closing price last Friday.