Re-IPO of XL Axiata could raise $552 million for parent

The deal will boost the free-float to as much as 20% from 0.2% today, making the Indonesian telecom operator a possible investment target for international funds.

Indonesia's third largest mobile operator Axiata XL has started taking orders for an institutional share sale that could raise up to Rp5.049 trillion $552 million for its Malaysian parent company.

The sale is comprised entirely of secondary shares, but even though it won't generate any new funds for XL, it is still viewed as a re-IPO of the company since it will boost the free-float to 20% from a meagre 0.2% today. The increase in liquidity means the high-growth company, which was previously known as Excelcomindo Pratama, will for the first time become a possible investment target for international funds.

Sources say there was huge interest from investors during last week's pre-marketing...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222