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hare prices for communications tower operator PT Inti Bangun Sejahtera (Inti) were up 50 percent to Rp 1,500 (16 US cents) apiece in the early minutes of its first day of trading on the Indonesia Stock Exchange (IDX) on Friday.

Inti shares opened at Rp 1,000. PT OSK Nusadana Securities Indonesia and PT Sinarmas Sekuritas were the IPO underwriters.

Inti released 1.03 billion shares, or 15 percent of its enlarged shares, to the public and became the 14th company to float shares on the bourse this year.

After the IPO, 84.9 percent of Inti’s shares were owned by PT Bakti Taruna Sejati, 15 percent by the public and the remainder by PT Inovasi Mas Tunggal.

The company expects to generate Rp 154.25 billion from the IPO, 85 percent of which would finance investments, while the rest would go to working capital, Inti finance director Stefanus Sudyatmiko said at the IDX in Jakarta.

“We decided to go public, considering the bright prospects of the business. We’re partnering with every telecommunications operator at the moment,” Stefanus said.

Inti currently has almost 2,000 towers and serves over 2,600 tenants, although that figure is expected to grow to 2,800 by year end.

In comparison, competitor PT Tower Bersama Infrastructure was operating 3,959 towers as of June.

“Our tower rental costs range from Rp 14 million to 15 million a month, with a contract duration between five and 10 years,” Stefanus added.

Inti planned on adding 100 more towers by the end of the year, either by acquiring old towers or building new ones, which would cost up to Rp 1.25 billion each, he said,

This year the firm has aimed at generating Rp 400 billion in revenue, a fourfold increase over 2011, with its earnings before interest, tax, depreciation and amortization (EBITDA) of Rp 300 billion, 500 percent higher than the Rp 50 billion recorded in 2011.

During the first six months of 2012, Inti’s revenue topped Rp 200 billion, while its EBITDA reached Rp 180 billion.

“We can’t really compare this year’s figures to those from last year because we have shifted our business focus,” Stefanus said.

Inti was established as an in-building solution service provider in 2006, changing its focus to telecommunications tower in December 2011, he added.

The company has allocated Rp 250 billion for capital expenditures in 2012 and has disbursed Rp 100 billion in the first half, mostly for expanding its tower network.

Contacted separately, BNI Securities analyst Akhmad Nurcahyadi said that Inti’s bow on the bourse would give investors alternatives in the telecommunications sector.

“There aren’t that many publicly listed companies that offer their service in this field. Investors who wish to expand or switch their portfolios might consider this company,” Akhmad said.

Inti, Akhmad added, could gain higher profits as telecommunication providers preferred to rent existing towers to building new ones to reduce costs. (tas)