Axiata Group has priced the sale of a 20% stake in its Indonesian unit XL Axiata (formerly Excelcomindo) at IR3,300 a share, which could see it raise US$600m from the international private placement.
Goldman Sachs is acting as sole global coordinator and…
Axiata Group has priced the sale of a 20% stake in its Indonesian unit XL Axiata (formerly Excelcomindo) at IR3,300 a share, which could see it raise US$600m from the international private placement.
Goldman Sachs is acting as sole global coordinator and joint bookrunner, along with CIMB Investment Bank.
Goldman Sachs, CIMB Investment Bank and PT Mandiri Sekuritas, JP Morgan Securities and Morgan Stanley are joint lead managers to the offering.
Axiata said it has successfully completed the book building exercise for the offering, offloading 1.53 billion shares representing an 18% stake at IR3,300 per share.
The firm said that the offering was covered at three to four times, “signalling the deep market interest and confidence in XL and its management.”
The overall 20% stake sale includes 1.8% greenshoe option which can be sold within one month from today if the firm needs to “stabilise XL’s share price.”
Between 50% and 80% of the 1.7 billion shares on offer will be allocated to Indonesian investors and the remainder to foreign investors.
The rationale behind the offer is to raise the free float of the operator – from 0.2% to around 20% – boosting liquidity in the process. XL stands to receive an income tax reduction if its free float reaches at least 20%.
Axiata president and group CEO Datuk Seri Jamaludin Ibrahim said: “We are pleased with the results of the offering, which garnered overwhelming response from investors on both the Indonesian and international front. More importantly, we managed to price the XL Shares at the highest end of the indicative range of 3,000 to 3,300 rupiah, signalling the deep market interest and confidence in XL and its management.”
Axiata holds 86.5% in XL, Etisalat holds 13.3% and the public has 0.2%.
Axiata Group is the international wing of Telkom Malaysia.
