AXIATA SHARES SHINE ON TOWER IPO PLAN
Company speaking to likely advisers on domestic listing of Edotco Group that could take place as soon as this year
AXIATA Group Bhd rose the most in more than two years after sources said Malaysia’s biggest wireless carrier was considering an initial public offering of its tower unit that could raise at least US$500 million (RM2 billion).
Shares of Axiata climbed as much as 6.6 per cent yesterday, the most since August 2015. They were up 4.6 per cent to RM5.71 at 12:24pm, outperforming the 0.6 per cent increase in the FTSE Bursa Malaysia KLCI index.
Axiata had been speaking to potential advisers to explore a domestic listing of Edotco Group Sdn Bhd that could take place as soon as this year, said sources.
The company may invite banks to formally pitch for a role on the deal this quarter, sources added.
Malaysia hosted US$1.7 billion of first-time share sales last year, more than five times the amount raised in 2016, Bloomberg data showed.
Edotco would join Edra Power Holdings Sdn Bhd and Brunei’s largest bank in seeking to list this year.
“Listing Edotco is positive for Axiata as it would unlock value for the group,” said Phillip Capital Management Sdn Bhd chief investment officer Ang Kok Heng yesterday.
“It would also help to ease Axiata’s debt burden as Edotco will be able raise funds on its own to expand its operations.”
Deliberations were at an early stage, and Axiata could decide not to proceed with the offering, said one of the people.
Edotco raised US$700 million (RM2.79 billion) in a private placement last year from investors, including Axiata’s top shareholder, sovereign fund Khazanah Nasional Bhd, and Innovation Network Corp of Japan said in a statement.
Malaysia’s second-biggest pension fund, Kumpulan Wang Persaraan (Diperbadankan), also invested in Edotco through the deal, which cut Axiata’s stake to 62.4 per cent.
Axiata chief executive officer Datuk Seri Jamaludin Ibrahim had said in a 2016 interview that the mobile operator planned to expand its overseas infrastructure operations ahead of an eventual listing of the business.