Sunday, November 8, 2009

MM: Maxis Re IPO

Have you apply to buy Maxis share that are going to re-listing in Bursa Malaysia on 19 Nov 2009? Mind to tell you that only 2.83% out of 30% of allocated share is dedicated to retail investors. 30% is 2.25 billion of shares.
The indicative price will be around RM5.20 - RM6.00.
I am sure you are asking yourself now about why I am writing this post. To be frank, I had a bad experience with Maxis broadband service. I just want to share my opinion with you to determine whether to buy or not to buy.

My Experience With Maxis
I personally dislike the service provided by Maxis due to a problem in my Maxis Broadband subscription.
The story begin here. I subscribed to Maxis USB Broadband service in the January of 2008. Taking the USB modem home after paying RM100 deposit happily, with the confirmation from the sales girl that I can condition-lessly get my refund of RM100 deposit if returning the modem in less than 7 days.
From that moment, I'd made the biggest mistake in my life. My computer keep disconnect from Maxis service due to lack of phone signal (USB modem work like your cellphone). And I stay in Subang Jaya, Selangor. The 3rd biggest city in Malaysia. It become impossible for me to endure the life without internet, so I return the modem on the 3rd day.

Maxis Treatment To Me
Right after I terminated the broadband subscription, I receive a letter from Maxis that stating I owe them approximately RM2.7k (18 months contract X RM145/months X 5% Gov Tax). I called the customer service to tell them I already terminate my service on the 3rd day. Then they send another letter to me, stating that I still owing them 20 cents.

How about my RM100?
I keep insist on getting back m RM100 from Maxis as it is part of the sales attraction to me. I am regret to have believe the sales girl in Subang Parade. Of course, I am very optimistic of getting back my RM100. Thus, I keep calling to the customer service center. The customer service  operator keep telling me they have filed a case to the one in-charge, I just had to wait he/she to call me.
So, I choose to wait.
After 1 week, I was still very optimistic.
After 1 month, I was anxious.
After 1 year, I knew i'll never get my money back. (There is not even one f*cking call from Maxis)

Facts about Maxis/ that possibly supporting the share price
- It is owned by Usaha Tegas Sdn Bhd (The private company of Malaysia Tycoon, Ananda Chrisnan)
- It is one of the two local telcos in Malaysia to acquire the 3G license and rollout 3G service in Malaysia. (Digi only launched their 3G service this year)
-.It operates via MEASAT satellite. (Ananda Chrisnan owned MEASAT)
- It is been strongly protected by the Malaysia government (Linked with the BN government)
- It is the largest telco in Malaysia.
- It is the telco appointed to offer iPhone 3G & BlackBerry service in Malaysia.
- It is providing sux service yet earning big money.

Maxis currently control 40% of market share in Malaysia Telecommunication sevice. Their earnings are less likely to be diluted due to stiff competition. Moreover, they target payout ratio is 75%. Which meant that for every $100 of net profit, $75 will be given as dividend. As a home-grown company, Maxis advantages are fully exploit (I think you know what i mean).
Another impressive remark should be given on the institutional investors whose holding the remaining 27.17% of shares. There are large institutions namely PNB, EPF, and Fidelity Investments from US. Such institutional investors are actually sharing risk with retail investors and supporting the share price.
So, join in the fun or stay away? Decide yourself!


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