Astro Malaysia Seeks to Raise About $1.5 Bln in Malaysia IPO

19 Sep 2012 04:05 BST DJ UPDATE:

--Astro Malaysia to raise $1.5 billion from Malaysia IPO --Astro seeks to price IPO at MYR2.70-MYR3.00 --Astro to start roadshows Thursday (Background on IPO market in 2nd-3rd paragraphs, 8th-9th paragraphs, company background in 6th paragraph, IPO details in 7th paragraph.) KUALA LUMPUR--Astro Malaysia Holdings Bhd., a Malaysian cable television operator, is seeking to raise about $1.5 billion from an initial public offering, the latest in a string of big-ticket deals from the Southeast Asian nation. The proposed listing of Astro--partly owned by local telecom magnate Ananda Krishnan and the Malaysian government's investment holding arm Khazanah Nasional Bhd.--is one of the several widely watched deals amid a drought in Asia's IPO market and Facebook Inc's lacklustre performance after a $16 billion fund raising. Among others, American International Group Inc.'s sale of its remaining 18.6% stake in AIA Group Ltd. could raise around $7.5 billion, based on Wednesday's closing price, making it the region's biggest share sale after the ongoing Japan Airlines Co. IPO, which could raise $8.4 billion. Astro Malaysia is seeking to price the institutional tranche at between 2.70 ringgit and 3.00 ringgit ($0.88-$0.98) per share, a person familiar with the development said Wednesday. The company is looking to start roadshows Thursday, according to another person with knowledge of the deal. On offer is up to 1.52 billion shares, representing 29.2% of its share capital, according to an updated draft prospectus filed to the securities regulator last month. Institutional investors are allocated 1.26 billion shares with the remaining 259.9 million shares will be sold to the public. The company has a virtual monopoly on pay-TV services in Malaysia and also operates eight terrestrial radio stations. It was delisted from the Malaysian stock exchange following a 2010 buyout by Mr. Krishnan and Khazanah Nasional. When the company was taken private in 2010 Astro was valued at MYR8.3 billion, or $2.6 billion. Astro has earmarked more than half of the planned proceeds from the IPO for capital spending, which will include the construction of a new corporate building and technical facility as well as investments in broadcast and transmission equipment, Astro said in the prospectus. Malaysia has been one of the hottest markets for IPOs this year. State-run palm planter Felda Global Ventures Bhd raised $3.3 billion in the world's second largest IPO after Facebook's share sale while hospital operator IHH Healthcare Bhd raised over $3.1 billion last month in the third largest IPO this year. Other deals are also in the works. Port owner Westports Malaysia Sdn. Bhd. is looking to raise $1 billion from an IPO, people familiar with the matter said recently, while power company Malakoff Corp. Bhd. is planning another $1 billion deal early next year.