KUALA LUMPUR: Maxis Bhd plans to raise up to RM1.64 billion via its plan to issue 300 million new shares under the proposed private placement to investors with an indicative issue price for the placement shares of RM5.47 apiece.
In a filing to Bursa Malaysia yesterday, the communications service provider said, this represented approximately four per cent of the total number of issued shares of Maxis as at June 16, 2017, being the last trading day immediately prior to the date of the announcement of 7,510,510,600 its shares.
“The proceeds will be used for the repayment of borrowings and related incidental costs within 12 months.
The company is proposing the equity fund-raising exercise to strengthen the company and its subsidiaries’ financial position by reducing part of the existing borrowings of the Maxis Group.
“The benefits will include enhanced cash flows, liquidity, interest costs savings and improved gearing levels,” it said.
Maxis said it would also create financial flexibility for the group to fund its future spectrum assignment fees, expansion plans and its growth strategy should the opportunities arise. — Bernama