UPDATE 1-Malaysia's Maxis may re-list by year end - report

* Funds from float to be used to expand in India, Indonesia

* Malaysian PM wants Maxis to re-list to boost local bourse

(Adds Maxis statement)

KUALA LUMPUR, July 25 (Reuters) - Maxis, Malaysia's top mobile phone operator, could re-list by the end of the year following government calls to boost liquidity on the local exchange, a top business weekly reported on Saturday.

The Edge, citing unidentified sources close to the company, said the funds used from floating the company's Malaysian operations would be used to expand business in India and Indonesia.

"That's an option that's being seriously looked at. (A listing by year end) is possible, if regulatory approvals go smoothly," one source said.

Malaysia's Prime Minister Najib Razak on Wednesday said he had asked Maxis to re-list on Bursa Malaysia to boost liquidity and draw in investors to the Southeast Asia's most laggard stock market so far this year .KLSE.

Maxis said it would take into consideration what the premier had said when deciding on the timing to relist.

"When Maxis was privatised and de-listed in 2007, the stakeholders articulated the possibility of a re-listing of the company after internal re-structuring, some time in the future," the firm said in a statement issued later on Saturday.

The firm was de-listed by reclusive tycoon Ananda Krishnan, who controls 75 percent of Maxis. The rest is owned by state-owned Saudi Telecom Co Ltd 7010.SE

Maxis' market capitalisation stood at around 39 billion ringgit ($11.05 billion) before it was taken private, Reuters data showed, and the new listing is expected to give the company an enterprise value of 40 billion ringgit, the report said.

Only plantation conglomerate Sime Darby (SIME.KL) and the Southeast Asian country's biggest bank, Maybank (MBBM.KL), have higher market capitalisation at 47.5 billion ringgit and 45.2 billion ringgit respectively. (Reporting by Niluksi Koswanage; Editing by Nick Macfie/James Jukwey)