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05-10-2012, 07:28 AM
Astro IPO to raise S$1.8 bln as Malaysia listings flourish
Updated 05:08 PM Oct 04, 2012
KUALA LUMPUR - Pay-TV firm Astro Malaysia Holdings will raise about US$1.5 billion (S$1.8 billion) by selling shares at the top end of a marketing range, as privatisation schemes and economic growth cement Malaysia's position as Asia's top destination for IPOs this year.
Astro priced the IPO at 3 ringgit per share, implying somewhat rich valuations, although analysts expect it to continue Kuala Lumpur's strong run of share debuts when the stock lists on Oct 19.
The deal will boost Malaysia's 2012 IPO tally to about US$7.3 billion, accounting for nearly one-quarter of all new listings in Asia-Pacific and well up from about US$1.8 billion in Malaysia in the same period last year.
Analysts are betting on a strong debut, helped by Astro's market dominance and the strong demand for the offer, which drew 16 cornerstone investors including US hedge fund Och-Ziff Capital Management.
"We do see the potential in the company, especially given its unofficial monopoly control over the Malaysia pay-TV market," said OSK Research analyst Kong Heng Siong.
"I do expect the opening price to be higher than 3, just looking from the demand itself ... If you talk about the overall IPO market, most of them have done fairly well, so I would expect a similar performance by Astro."
The IPO is Malaysia's third biggest in 2012, after Felda Global Ventures Holdings' US$3.3 billion offering and IHH Healthcare's US$2.1 billion flotation, and the year's sixth largest worldwide.
Astro, with a near-monopoly in Malaysia's residential pay-TV market and a subscriber base of 3.1 million, is returning to the public markets after it was privatised in 2010.
At the offer price, it will have a market value of 15.6 billion ringgit (S$6.3 billion), nearly double the 8.3 billion ringgit it was worth when it was privatised. REUTERS
Obtained from today online.
Updated 05:08 PM Oct 04, 2012
KUALA LUMPUR - Pay-TV firm Astro Malaysia Holdings will raise about US$1.5 billion (S$1.8 billion) by selling shares at the top end of a marketing range, as privatisation schemes and economic growth cement Malaysia's position as Asia's top destination for IPOs this year.
Astro priced the IPO at 3 ringgit per share, implying somewhat rich valuations, although analysts expect it to continue Kuala Lumpur's strong run of share debuts when the stock lists on Oct 19.
The deal will boost Malaysia's 2012 IPO tally to about US$7.3 billion, accounting for nearly one-quarter of all new listings in Asia-Pacific and well up from about US$1.8 billion in Malaysia in the same period last year.
Analysts are betting on a strong debut, helped by Astro's market dominance and the strong demand for the offer, which drew 16 cornerstone investors including US hedge fund Och-Ziff Capital Management.
"We do see the potential in the company, especially given its unofficial monopoly control over the Malaysia pay-TV market," said OSK Research analyst Kong Heng Siong.
"I do expect the opening price to be higher than 3, just looking from the demand itself ... If you talk about the overall IPO market, most of them have done fairly well, so I would expect a similar performance by Astro."
The IPO is Malaysia's third biggest in 2012, after Felda Global Ventures Holdings' US$3.3 billion offering and IHH Healthcare's US$2.1 billion flotation, and the year's sixth largest worldwide.
Astro, with a near-monopoly in Malaysia's residential pay-TV market and a subscriber base of 3.1 million, is returning to the public markets after it was privatised in 2010.
At the offer price, it will have a market value of 15.6 billion ringgit (S$6.3 billion), nearly double the 8.3 billion ringgit it was worth when it was privatised. REUTERS
Obtained from today online.
