YTLP, MAXIS,SCOMI, GREENPACKET, MRCB

YTL Communications Sdn Bhd, a subsidiary of YTL Power International Bhd (YTLP MK, Buy, TP: RM2.50) yesterday announced a 4G innovation network that will see the company head a consortium of major industry players. YTL Communications signed agreements with technology players Cisco, Clearwire, GCT Semiconductor and Samsung to develop new products and applications for YTL’s 4G WiMAX network, expected to be rolled out some time in the 2H10. The innovation partnership will help develop key products for YTL’s WiMAX network, such as handsets featuring mobile voice-over-IP (VOIP), a technology that is being pioneered by Samsung. Presently, YTL is planning a launch that will cover the entire nation, which
will make it the first company in the world to do so. The cost of investment is expected to be about RM2.5bn. (Financial Daily)

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Maxis Bhd set the price of its IPO shares at RM4.75 each while institutional and cornerstone tranches are at RM5 per share, collectively raising RM11.2bn from listing 2.25bn shares. The market capitalisation at institutional price amounts to RM37.5bn with enterprise value of RM42.5bn. The institutional offering book, excluding the offering to cornerstone and
approved bumiputra investors, was 3.7 times covered (equivalent to RM19.3bn), comprising 500 global investors. The IPO attracted orders over RM26.5bn with strong demand from international and Malaysian investors. Foreign interest came from nstitutional investors familiar with Malaysia, 10 institutional investors new to Malaysia with orders of RM1.3bn, as well as
sovereign wealth funds. The institutional offering will raise RM5.3bn, of which US$800m will be from foreign investors. Bumiputra investors and cornerstone tranches attracted RM5.2bn for 1bn shares. Cornerstone investors include Employees Provident Fund, Fidelity Funds-Malaysia Fund, Kumpulan Wang Persaraan (Diperbadankan) and Permodalan Nasional Bhd. The retail offering of 212.3m shares was oversubscribed by 180% for 381.2m shares worth RM2bn. Upon its listing on Nov 19 Maxis will become a component part of the FTSE Bursa Malaysia Composite Index, and increase capitalisation of the market by 4%. (Star Biz)

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Scomi Engineering Bhd and its Brazilian partner CR Al-meida SA Engenharia De Obras have made it past the prequalification stage of the US$1.35bn (RM4.56bn) Sao Paulo monorail job in Brazil. Other companies pre-qualified for the job include Bombardier of Canada, Siemens of Germany and Hitachi of Japan. The next stage for the pre-qualified companies will be submitting of proposals, which has to be done by Dec 21.The pre-qualified companies are required, among others, to design and build the monorail system, and purchase 54 trains with a minimum passenger capacity of 1,000 persons each. The first 2.4km stretch will connect the future stations of Vila Prudente and Oratorio, with testing due by end-2010. The second stage, to be ready in 2011, involves a 10.4km stretch that will continue on to the Sao Mateus station. The complete line to the Cidade Tiradentes neighbourhood is expected to be ready in 2012. (Financial Daily)

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Green Packet Bhd (GPB) is proposing a 10% private placement of up to 84.8m new shares of 20 sen each towards raising additional funds expeditiously and strengthening its balance sheet position without incurring interest costs as opposed to bank borrowings. Green Packet group managing director CC Puan said the exercise may also broaden its institutional investor base. Green Packet said the issue price would be determined and fixed by the board once approval had been sought from the relevant authorities. It said both its major shareholders, Green Packet Holdings Ltd (GPHL) and OSK Technology Ventures Sdn Bhd, had indicated their intention to participate in the proposed placement. It added that the placement shares were also proposed to be placed out to independent third-party investors to be identified later. (Financial Daily)

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Malaysian Resources Corporation Bhd (MRCB) has made a foray into the Australian property development market, through its wholly-owned subsidiary Bitar Enterprises Sdn Bhd which acquired 70% equity interest in Australian company Yes 88 Pty Ltd. MRCB is forking out some A$6.57m (RM20.64m) for the Australian venture, entering into a shareholders and subscription agreement with 3 individuals and shareholders of Yes 88 – Chong Kai Wai, Tam Cheok Wing
and Chang Chai Kin – who are Malaysians involved in the property development business in Australia. MRCB and the existing shareholders of Yes 88 are planning to jointly develop 2 four-storey buildings to be utilised as residential dwellings and student accommodation on the parcel of land. The estimated gross development value is A$54.8m. MRCB said that this acquisition,
“will provide an inroad for MRCB to expand its property business in Australia”. (Financial Daily)
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