Posted on the EdgeMalaysia: http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=219033&Itemid=79
- Astro Malaysia to take one-third of IPO proceeds
Written by Cindy Yeap of theedgemalaysia.com
Thursday, 23 August 2012 09:15
KUALA LUMPUR: The re-listing of Astro Malaysia Holdings Bhd is expected to raise some US$1.75 billion (RM5.47 billion) from the sale of 29.2% of the company.
However, only 31.2% of proceeds raised from the sale of up to 1.52 billion new and existing shares at the comeback IPO will go to Astro Malaysia, according to an updated draft prospectus dated Aug 17 on the Securities Commission’s website. Of the total 1.52 billion shares, slightly over a billion shares are sold by existing shareholders T Ananda Krishnan and Khazanah Nasional Bhd, while the rest are new shares.
From the sale of the 474.3 million new shares estimated to net around RM1.7 billion, some 58% of gross proceeds has been earmarked for capital expenditure, while 29.35% will go to repay bank borrowings. This leaves 8.6% of proceeds for general working capital and 4.1% for listing expenses.
Astro Malaysia, which is expected to come to market in September, did not provide an indicative pricing in the updated version to the initial draft released on Aug 8.
Nonetheless, the IPO is expected to raise RM5.47 billion for the company and its controlling shareholders using the indicative price of RM3.60 apiece that a Reuters report last week said bumiputera investors had been offered.
This values Astro Malaysia, which is listing without its foreign operations in India and Indonesia, at RM18.7 billion — significantly above the RM8.3 billion the old ASTRO ALL ASIA NETWORKS PLC  was worth at the RM4.30 privatisation price. Like the re-listing of Ananda’s Malaysian mobile arm Maxis Bhd, Astro Malaysia is widely expected to market itself as a dividend play, having promised a minimum pay-out ratio of 75%.
Astro Malaysia is widely expected to market itself as a dividend play, having promised a minimum payout ratio of 75%.
Ananda,who privatised the pay TV operator with Khazanah two years ago, will continue to control about 50% of Astro Malaysia’s enlarged share base post-IPO. Khazanah’s effective interest will be 20.8%, according to the updated draft document, bringing their collective interest in Astro Malaysia to 70.8%.
The updated document also named former Chief Justice of Malaysia Tun Zaki Tun Azmi as Astro Malaysia’s independent non-executive chairman, with Usaha Tegas Sdn Bhd director Augustus Ralph Marshall as executive deputy chairman.
Set to be Malaysia’s third largest IPO so far this year after Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd, some 1.26 billion shares or 95% of Astro Malaysia’s offering are for institutions. Of this, some 597.69 million shares or 11.5% of the company’s enlarged share base will go to bumiputera investors.
This leaves 259.87 million shares, or 5% of its enlarged share base, for the retail offering, including that for Astro directors, employees, contractors and customers. The pool for the general public is 103.95 million shares or 2% of Astro Malaysia’s share base, half of which are for retail bumiputera investors.
As at April 30 this year, Astro Malaysia had RM479.1 million cash. Borrowings and finance lease liabilities stood at RM3.69 billion, of which RM3.66 billion is long-term liability.
While its 3.1 million customers already account for over 50% of Malaysian householders, Astro Malaysia said there is still growth to be had. Astro Malaysia intends to stay the market leader with continued investments of RM1 billion annually in content. It also intends to derive new income stream from smart and targeted marketing of additional products to its existing customer base.
Listing without the foreign pay TV operations housed under the de-listed Astro All Asia Networks, Astro Malaysia would be sheltered from the on-going courtroom disputes between Ananda and former Indonesian partner the Lippo Group as well as the wider group’s run-in with authorities over corruption allegations in India that has yet to be fully laid to rest.
CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are joint principal advisers for the IPO.
Seeks relisting at 18.7 Billion???
Are they really serious?? Can life be soooooooooooooooooooo good????
Want to go for this new listing?
And mind you, just like Maxis, Astro is seeking listing without its overseas operations!!!
Do refer this past posting on 31 March 2010: Astro Privatisation And Sun Direct TV's Immense Potential. Allow me to post the following from that posting.
Then the following statement from him struck me.
- "(Astro) has better value in being taken off the market with the current stage of development of high definition television (HDTV) and the Indian market,"
This reminds me of Aircel!
Flashback the posting: Regarding Aircel and Maxis. It seems that as mentioned in a Business Times article in Nov 2009, Aircel had 26 million subscriber growing at one million new subscriber per month!
That was the jewel in Maxis.
The incredible growth in Aircel.
Which got me asking, what about Astro's growth in India.
Sun Direct TV.
So I asked Google.
- As per its website, Sun Direct reaches approximately 5.3 million homes, whereas Tata Sky has a subscriber base of more than 4.5 million and Dish TV has about 6.5 million subscribers.
- Tata Sky has 16 per cent of the incremental subscriber growth while Sun Direct has 21 per cent and Big TV 12 per cent, the sources add
And here is from Sun Direct own website. http://www.sundirect.in/media.php
Check this out.
7th July 2008 http://www.sundirect.in/mediaDetails.php?mediaId=2
- Sun Direct TV Pvt. Ltd one of the leading DTH service provider announces the achievement of 1 Million DTH subscribers in 200 days.The
one million subscriber base comes from only 4 southern states i.e.
Tamil Nadu, Karnataka, Kerala, Andhra Pradesh and the union territory of
On the eve of this 1 Million subscriber achievement , Sun Direct has launched 14 add-on packages ranging from as low as Rs. 10/- to Rs. 140/- "Packages to suit every pocket" in a "Pay for what you watch" concept for the very first time in Indian DTH scenario.
8th April 2009. http://www.sundirect.in/mediaDetails.php?mediaId=5
- Another landmark achievement for us is crossing the 3 million mark subscriber base by March 2009, as committed earlier; this achievement qualifies us to be the No 2 service DTH provider. In the coming fiscal year we look forward to occupy the pole position. We have added more customers than any other DTH player in the last one year and in the coming days we will be adding more innovative features, services and channels in our offerings.” Added Mr. D'Silva
Sep 2009. http://www.sundirect.in/mediaDetails.php?mediaId=7
- Fastest growing DTH player to touch 4 million base in less than two years time
Chennai, 7th September, 2009: Sun Direct Pvt Ltd, the leading direct-to-home (DTH) service provider in the country achieved another milestone by crossing the 4 million subscriber base; the fastest growing player in the DTH market to do so in under two years, since its launch in December 2007.
Setting up a scorching growth pace in the market with its Value for Money offer, right regional content mix, deep distribution across the country and offering flexi-content pricing, all of which have enabled Sun Direct to become the fastest growing DTH player in the country today.
What incredible growth!
Don't you think Sun Direct is a company with incredible potential?
Then the Maxis saga, the listing, delisting and relisting came to mind.
Hmmm... very much possible, yes? What if Astro delist... goes private.. and relist only the Malaysian operations only. Just like Maxis. Dare we say not possible? The new Astro without Sun Direct! Just like Maxis without Aircel.
I know I am usually wrong, so could I be wrong here?
Astro now wants to relist without Sun Dircect and they want to sell you this IPO at a more expensive price!!!!
Life is so good, yes?
So how is Sun Direct doing today?
Last year, Sun Direct was reported to have 7 million subscribers! http://ibnlive.in.com/generalnewsfeed/news/sun-direct-surpasses-seven-million-subscriber-base/802624.html
Remember company only started in 2008. By 2011, it had 7 million subscribers. What an incredible growth rate. (And apparently by March 2012, Sun Direct now has 7.5million subscribers! http://en.wikipedia.org/wiki/Sun_Direct#cite_note-9 )
Yeah, Sun Direct USED to belong Astro All asia.
But now they want to relist Astro but without Sun Direct!!!
I wonder how those who sold their Astro All Asia shares feel now......
Now do you understand why companys are delisted and relisted again?
ps: Regarding the IPO. I have no idea how this BRAND new IPO will perform. I am just not interested to know. All I know is I want no part of such!