MNC to raise Rp 2.4 trillion from IPO
Pay TV provider PT MNC Sky Vision, one of Indonesia’s largest pay TV providers, is seeking to raise up to Rp 2.47 trillion (US$264 million) from the company’s initial public offering (IPO) scheduled in early July.
The company plans to offer 1.42 billion shares through the IPO, or 20 percent of its enlarged capital. The number comprises 847.67 million new shares and 565.11 shares of its parent company PT Bhakti Investama, which prior to the divestment holds a 20 percent stake in MNC Sky Vision.
MNC Sky Vision said on Friday that it set the share price for the IPO in the range of Rp 1,460 to Rp 1,750. “We have succeeded in becoming a dominant player in the pay TV business and want to provide an opportunity for the public, both domestic and foreign investors, to invest in the company, which is said to be the largest [of its kind] in Southeast Asia,” president director Bambang Rudijanto “Rudi” Tanoesoedibjo said.
The company has appointed PT Danareksa Sekuritas and PT MNC Securities as underwriters for the IPO.
According to the company’s prospectus, the offering period for the shares will be from June 29 until July 3. MNC Sky Vision is expecting to list its shares on the Indonesia Stock Exchange (IDX) on July 9.
To attract overseas investors, the company is also conducting road shows in several countries covering Asia, Europe and the US.
“We hope to finish the road shows next week,” Rudi said, adding that the company is optimistic about the IPO despite the bearish mood in the global market largely caused by the uncertainty surrounding the European crisis.
The Jakarta Composite Index (JCI) — the IDX benchmark — closed at 3,818.11 on Friday, a slight 0.7 percent increase compared to a day earlier. JCI, the main price barometer for the Indonesian Stock Exchange (IDX), plunged to 3,654.6 on June 4; a 9 percent drop from its peak of 4,021 on May 2.
MNC Sky Vision is planning to allocate 70 percent of funds gained from the IPO to finance capital expenditure, mainly for purchasing broadcast equipment. Another 20 percent would be used to settle debts, while the remaining 10 percent would be committed to support working capital.
Finance director Effendi Budiman said that the company allocated Rp 875 billion this year. “We have spent Rp 190 billion of the allocated funds,” Efendi said.
MNC Sky Vision currently has three brands of pay TV, namely Indovision, Top TV and Okevision. Through the three brands, MNC Sky Vision claims to be the domestic market leader, with market share reaching 70 percent.