Maxis IPO result

Dear investor,

Maxis IPO result is already out. You could call up your broker to check the result. or below is the url
http://www.mih.com.my/enquiry.php

Maxis relist on Main Market Nov 19 2009?

I read some interesting article on Maxis market view. I would like to share as a follow on dicussion on my previous Maxis IPO article. Again both views are in 180' reverse direction ;)

Why it is a buy

1. A must have large cap stock for fund managers
2. Industry learder since year 2000 and offers investors biggest exporsure to Malaysia's telecoms sector
3. It has a performance driven board and management (Ananda)
4. Good track record as old Maxis delivered 300% total return
5. Generate more cash vs spending due to hived off from overseas unit. Good dividens.

Why it is not a buy

1. RM5.2 is higher valuation than local and regional competitors. Limitted potential upside.
2. Not the only choice for dividend yeilds.
3. No regional exporsure, lack of growth
4. When the old Maxis debutted on Bursa in year 2002, mobile penetration was about 40% vs today more than 100% penetration.
5. Margin under stress due to competition.

how about you? is Maxis a buy or not for you?

Is Maxis IPO RM5.2 attractive enough?

Thank to anonymous for sharing below url in my previous article. It's very useful and provide some view on the Maxis IPO valuation to the investor.

http://online.wsj.com/article/SB125719127352623511.html
http://www.reuters.com/article/innovationNews/idUSTRE59B0P420091012
http://mysmartmoneytips.com/2009/11/02/should-you-subscribe-to-the-maxis-ipo/
http://www.google.com/hostednews/afp/article/ALeqM5hEev48YbArfdzW87fuguU11b3VBw

Valuation:
Is RM5.2 at the right price? some analysis said it is too high, some said it should be RM4-6, some said you should not pay more than RM7, some said RM6. Which one is correct? Let review some IPO details. Based on the IPO price of RM5.2 per offer share, the total market capitalisation is estimated at RM39 billion. (When Maxis was privatised at RM15.6 per share, the company's market cap stood at RM39 billion as well). According to merchant bankers, if Maxis is valued based on EV/EBITDA, a RM5.2 is too high and translate to >9. Telekom Malaysia ~ 4.99 EV/EBITDA, DIGI.Com ~ 7.25 EV/EBITDA, China Mobile ~ 4.96 EV/EBITDA.

But whatever valuation, i believe Ananda has a record of creation value for his shareholders. right? Let look at Maxis accomplishments over the year and some recent awards.
December 2004 - First operator in Malaysia to launch the BlackBerry
April 2005 - First operator in Malaysi to launch 3G services
September 2006 - First operator in Malaysia to launch HSPA for wireless broadband services
March 2008 - First operator in Malaysia to surpass 10 millions subscriptions
March 2009 - First operator in Malaysia to lanch the Apple iPhone
April 2009 - First operator in Malaysia to launch commercial NFC services
PC.com Awards 2009 - Best Mobile Broadband
Frost & Sullivan Malaysia Telecoms Awards 2009 - Mobile Data Service Provider of the year
Brand Finance Awards 2008 and 2009 - Number 4 brand in Malaysia
Asia Mobile News Awards 2008 - Mobile Operator of the Year Malaysia
Malaysian Effie Awards 2008 - Silver Award Winner.

Market Overview:
Subscribers ('000)  Dec2006     Dec2007     Dec2008     June2009
Maxis                     8,068          9,765          11,234         11,423
Celcom                   6,079          7,202            8,761           9,698
Digi                         5,312          6,409            7,062           7,230

Financial Data:
Revenue (Million)   Dec2006     Dec2007     Dec2008     June2009
Maxis                      6,957.1       7,689.6       8,449.8        4,243.8
Axiata                    16,339.2      9,996.9     11,347.7        6,030.4
Digi                          3,652.5       4,362.6       4,814,5        2,423.2

PAT (Million)         Dec2006     Dec2007     Dec2008      June2009
Maxis                       2,105.4       1,980.2        2,400.4        1,141.0
Axiata                       2,302.3       1,847.6           471.1           621.8
Digi                              805.7       1,062.6        1,140.7           509.9

base on some peer comparison, are you favour in Maxis? is Maxis IPO too expensive for you? Dear investor, you have a choice :)

Maxis IPO

Dear investor, are you ready for Maxis IPO? you could check out the customer eligibility to apply the offer shares at below url. IPO price is at RM5.2
https://dealernet.maxis.com.my/S/maxisipo/eligibility_check.asp