Hutchison Max Plans $200m Adr Issue

It will be the first private telecom company whose global offering will be focused at the US markets, rather than adopting the GDR route.

Hutchison Max Telecom is a joint venture of Max India group and Hong Kong-based Hutchison Whampoa group. Hutchison Telecom is the market leader in the mobile communications in Hong Kong, where the penetration rate for the cellular market is very high.

Sources close to the company confirmed that Hutchison Max was exploring the markets at present. While the launch of the issue has yet to be decided, it is believed that it could take place early next year. While the clearance for the issue has to come about, it is learnt that Goldman Sachs has bagged the mandate as the lead manager for the issue.

The main reason why it is seeking listing on the US stock exchanges is that the global cellular/telecom market, being sophisticated and among the fastest growing, would gain the right focus from the US investor base.

According to reports from New York, fund managers are involved in strategic planning of the telecom/cellular market

calendar with two key players - Bharti Telecom and BPL Systems - planning Euro-issues in the

coming months. These could hit the market possibly by the end of the year or early next year, sources said.

The Bharti Telecom GDR issue, which will be the first to be launched, will range between $ 100-150 million and will be lead managed by investment banks Kleinwort Benson and Morgan Stanley. The BPL offering, also ranging between $ 100-150 million, will be lead managed by Morgan Stanley, sources said. Both corporates are seeking to raise funds for their expansion plans.