While the hype about Asian IPOs is largely focused on China and the seemingly endless stream of offerings on the Shanghai and Hong Kong exchanges, Malaysia on Thursday quietly and smoothly staged the region’s largest IPO of the year.
Maxis, Malaysia’s biggest mobile-phone operator, rose as much as 10 per cent in its trading debut to 5.50 ringgit just after midday in Kuala Lumpur, after institutional investors bid for 3.7 times more stock than was offered in the $3.3bn public offering, reports the FT.
The company, a spin-off from privately held Maxis Communications run by Malaysian billionaire Ananda Krishnan, later said it is prepared to pay investors higher dividends than it promised after the successful debut, according to Bloomberg, which quoted the chief financial officer Annizah Rashidi saying Maxis would go into “active capital management”.
With a market cap of more than $12bn, Maxis will become Southeast Asia’s third-biggest phone company, behind Singapore Telecommunications and PT Telekomunikasi Indonesia, added Bloomberg. Also on Thursday, over in Hong Kong, another successful listing — Longfor Properties, the Chinese developer — jumped on its debut in another encouraging sign for companies waiting to price their share sales in the region. Longfor rose as much as 12.6 per cent despite signs of growing caution amongst investors towards Chinese property stocks. The shares were at HK$7.77 towards midday in Hong Kong, 10 per cent higher than their offer price of HK$7.07.
The two listings come ahead of at least 12 other companies which are scheduled to price their IPOs in Asia before the end of 2009, according to Dealogic. Hong Kong is set to dominate with seven listings, while the rest of the companies are selling shares in Mumbai, Seoul and Singapore, notes the FT.
Among those in the queue, Las Vegas Sands, controlled by tycoon Sheldon Adelson, is launching a US$3.35bn IPO in Hong Kong for its Macao business with trading scheduled to begin on November 30. And Oleg Deripaska’s UC Rusal aluminium business is also planning to list in Hong Kong this year.
More interesting are developments concerning an IPO that will not only top Maxis and Las Vegas Sands as Asia’s biggest IPO of the year: China Minsheng Banking Corp, an IPO which at US$3.9bn ranks as the fifth biggest global listing of 2009.
As the FT reports:
China Minsheng Banking Corp will raise at least US$3.9bn with its Hong Kong initial public offering — but without the support of a high-profile Chinese private equity fund. People familiar with the matter said that Beijing-based Hopu Investment Management, which had sought US$1bn of stock, had cancelled its order after the company priced its shares above HK$9 each.
“Hopu felt that Minsheng is overpriced above HK$8.75 a share and so withdrew its order,” said one person familiar with the matter.
Hopu, which was set up by ex-Goldman Sachs dealmakers in 2008, gained attention this year with its multibillion dollar deals for stakes in Bank of China and China Construction Bank — and then raised further eyebrows with its agreement reported this week to buy $1bn worth of Minsheng stock as part of the Chinese bank’s $4bn IPO. As the FT remarks on Thursday:
Hopu’s price discipline contrasts with aggressive retail demand for exposure to a bank which is considered among the country’s best-managed lenders.
Minsheng shares will begin trading next Thursday at HK$9.08 each, around the mid-point of the price range indicated during a global investor road show which ended this week — at which point it will be known whether its IPO was overpriced or not.
Related links:
Asia’s markets are still dancing for IPOs – FT Alphaville
IPOs are back – should you be buying? – SmartMoney