KUALA LUMPUR: Axiata Group Bhd has announced a capital expenditure (capex) of RM6.6 billion for the year ending December 31, 2020.
This is slightly higher than the capex spent last year of RM6.2 billion.
Axiata group chief financial officer Vivek Sood said the capex would be spent mostly on network expansion, especially in Indonesia and Bangladesh.
“We will continue to put more capex in Indonesia as expansion there continues to give significant return and profit to the group.
“There is also more requirement in Bangladesh for 4G expansion,” he told reporters at Axiata financial year 2019 media briefing, here, today.
The company also sets a target of 3.5 to 4.5 per cent revenue growth, and 4.0 to 5.5 per cent growth in earnings before interest, taxation, depreciation and amortisation (EBITDA).
Vivek said the group would be allocating RM600 million for its tower company, edotco Group Sdn Bhd for tower acquisition.
Meanwhile, Axiata group chief executive officer Tan Sri Jamaludding Ibrahim said the group was “in no rush to list edotco”.
It was earlier reported that Axiata was reviving preparations for an initial public offering (IPO) for edotco, according to people familiar with the matter.
The report quoted sources saying that Axiata’s advisers had recently resumed work on the deal, which was shelved last year.
Axiata had aimed to list the unit in Kuala Lumpur as soon as this year and may seek a valuation of around US$2.5 billion for the company, they said.
Jamaluddin said the group was now sitting on RM4 billion in cash and still can fund edotco operation and expansion.
“We are currently evaluating the state of readiness for edotco to go for IPO. Operationally, we are ready but it has to come with the righth value. We are not in a rush,” he said.