Astro offers IPO shares to indigenous investors at 3.6 ringgit-source

KUALA LUMPUR Aug 14 (Reuters) - Astro Malaysia Holdings Bhd, a pay-TV firm controlled by tycoon Ananda Krishnan, has offered its IPO to indigenous bumiputra investors at 3.60 ringgit a share, a source with direct knowledge of the matter told Reuters on Tuesday.

The IPO, expected by the market to list by end-September and to raise around $1.5 billion, would be Malaysia's third-largest this year after the initial share sales by Felda Global Ventures Holdings Bhd in June and IHH Healthcare Bhd in July.

The offer had opened late last week and will close at 4 p.m. (0800 GMT) on Wednesday, said the source, who would not be identified as the details of the deal were still private.

Based on this indicative price of 3.60 ringgit, the 597.69 million shares reserved for bumiputra investors would be worth about 2.15 billion ringgit ($688.88 million), according to Reuters calculations.

Bumiputra, or "sons of the soil," refers to the majority ethnic Malays and other indigenous people in Malaysia who benefit from a decades-old government policy that favours them in housing, education and business.

Cornerstone investors will be offered more or less a similar price, a second source with knowledge of the deal said.

"They have been approaching cornerstones," said the source, who declined to identified as the deal has not been made public.

Astro officials were not immediately available to comment.

The draft prospectus that the company filed last week to regulators did not give any details on the size of the listing and the time-frame of the IPO process.