Astro sets IPO price at RM2.70-RM3.00

Astro, controlled by Malaysia's second-richest man T. Ananda Krishnan,
set an indicative price range of RM2.70-RM3.00 per share for
institutional investors for its IPO that could raise up to RM4.56
billion, two sources with direct knowledge of the deal said.

Cornerstone investors placed bids for more than 70 per cent of the
institutional shares as of last Thursday, one of the sources said,
underscoring the growing interest in Malaysian deals and the emergence
of Southeast Asian capital markets.

"They have secured 16
cornerstones," said a third source, declining to identify the investors
as they may still change their plans.

Cornerstones such as
big money managers or sovereign wealth funds back many Asian listings,
committing to buy large, guaranteed stakes and agreeing to a lock-up
period during which they will not sell their shares.

The Astro
IPO, expected to be listed by end-September or early October, would
follow a US$3.3 billion (RM10.1 billion) share sale by Felda Global
Ventures Holdings Bhd in June and IHH Healthcare Bhd's US$2.1 billion
(RM6.4 billion) IPO in July.

Malaysia, where the equity
market is dominated by local investors and large domestic pension
funds, has defied a gloomy trend elsewhere that saw several IPOs pulled
due to a lack of investor interest.

Equity issuance in Malaysia
stands at about US$7.9 billion (RM24.2 billion) year-to-date, compared
with US$3.9 billion (RM11.92 billion) last year, and the shares of
Malaysian IPOs this year have gained 17 per cent on average since the
companies were listed, according to Thomson Reuters publication IFR.

Astro is offering up to 1.52 billion shares in its IPO, of which 597.69
million shares will be offered to Bumiputera investors, 661.75 million
to institutional investors, and the balance to retail investors.

Based on the indicative price range, the total 1.52 billion shares offered could be worth RM4.1 billion-RM4.56 billion.

Astro officials couldn't be immediately reached for comment by phone yesterday.

Ananda, who owns telecom and energy companies, is relisting Astro after
it was privatised in 2010 in a deal that valued it at around US$2.8
billion (RM8.6 billion).

The deal is being handled by CIMB
Group Holdings Bhd, Malayan Banking Bhd and RHB Capital Bhd. Several
foreign banks are also advisers, including UBS AG, Credit Suisse Group
AG, Goldman Sachs Group Inc and JPMorgan Chase and Co. Reuters