Maxis stock takes to Malaysia market


Maxis, the largest cell-phone service in Malaysia, faces tougher competition but says it doesn't plan a merger yet

KUALA LUMPUR, Malaysia -- Maxis Communications Bhd. stock debuted in Malaysia on Monday with a 6 percent rise for institutional shareholders.

The cell-phone company's stock closed at 5.15 ringgit, after an initial public offering that raised 3.05 billion ringgit ($803 million) in all.

Maxis is the largest cell-phone service in Malaysia. Local analysts said the sale and subsequent stock gains were within expectations.

Malaysia's overall stock market lost ground on Monday, in line with a dip in Tokyo. The Kuala Lumpur composite index drifted 1.2 percent to 735.78.

Maxis stock sold at different prices to professional and retail investors. Institutions that bought into the stock received it at 4.85 ringgit a share. Local retail investors got it at 4.36 ringgit.

An 18 percent rise for retail clients

So the "investors on the street" in Malaysia saw their holdings jump 18.1 percent, if they were allocated shares.

The company sold 652 million shares, around 65 percent of which went to institutions such as mutual funds. The rest went to individuals.

Overseas funds were interested to buy into the company, with doubts remaining about the strength of a U.S. rebound and accounting questions floating there.

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