This article first appeared in The Edge Financial Daily on June 21, 2017

KUALA LUMPUR: Maxis Bhd said its private placement to raise RM1.66 billion, announced on Monday, has been oversubscribed.

In a statement yesterday, Maxis said the book-building exercise for the issuance of 300 million new Maxis shares, or up to 4% of its issued shares under the private placement, attracted demand from both local and foreign institutional investors.

The issue price was fixed at RM5.52 per placement share, representing a discount of 6% to Maxis’ closing price of RM5.88 last Friday.

“This new equity will strengthen Maxis Group’s financial position and will give flexibility to fund future spectrum assignment fees and growth strategy. We expect the private placement to be completed by the end of July 2017,” said Maxis.

“Based on the average interest rate of borrowings of 4.7% per year, the assumed RM1.66 billion repayment of borrowings is expected to result in an after-tax interest savings of approximately RM59 million per year to Maxis Group,” it added.