Sep 20, 2012

Malaysia - Astro Malaysia Seeks to Raise $1.5 Billion in IPO

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KUALA LUMPUR — Astro Malaysia Holdings Bhd., a Malaysian cable-television operator, is seeking to raise about $1.5 billion from an initial public offering, the latest big-ticket deal planned in the Southeast Asian nation.

The proposed listing of Astro, partly owned by local telecom magnate Ananda Krishnan and the Malaysian government's investment holding arm Khazanah Nasional Bhd., is one of several widely watched deals amid a sluggish Asian IPO market and Facebook Inc.'s lackluster performance after a $16 billion share sale in the U.S.

On Wednesday, stock in Japan Airlines Co. edged up 1.1% in its Tokyo trading debut, after an $8.5 billion offering.

Astro Malaysia is seeking to price the institutional tranche at between 2.70 ringgit and three ringgit (88 to 98 U.S. cents) a share, a person familiar with the development said Wednesday. The company is looking to start its roadshow of presentations to potential investors on Thursday, according to another person with knowledge of the deal.

The company is offering up to 1.52 billion shares, representing 29.2% of its share capital, according to an updated draft prospectus filed to the securities regulator last month. Institutional investors are allocated 1.26 billion shares, with the remaining 259.9 million shares to be sold to the public.

Astro has a virtual monopoly on pay-TV services in Malaysia and also operates eight terrestrial radio stations. It was delisted from the Malaysian stock exchange following a 2010 buyout by Mr. Krishnan and Khazanah Nasional. When the company was taken private in 2010, Astro was valued at 8.3 billion ringgit, or about $2.7 billion.

Astro has earmarked more than half of the planned proceeds from the IPO for capital spending, which will include the construction of a new corporate building and technical facility as well as investments in broadcast and transmission equipment, it said in the prospectus.

Malaysia has been one of the hottest markets for IPOs this year. State-run palm planter Felda Global Ventures Bhd. raised $3.3 billion, while hospital operator IHH Healthcare Bhd. raised more than $3.1 billion last month.

Other deals are also in the works. Port owner Westports Malaysia Sdn. Bhd. is looking to raise $1 billion from an IPO, people familiar with the matter said recently, while power company Malakoff Corp. Bhd. is planning a $1 billion deal early next year.




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