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Telkom’s Mitratel eyes $1.8 billion in biggest Indonesian IPO
Mitratel is expected to become the country's "biggest independent telecom tower player" after acquiring some 6,000 towers using the IPO's proceeds.
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Mitratel is expected to become the country's "biggest independent telecom tower player" after acquiring some 6,000 towers using the IPO's proceeds. (Shutterstock/File)
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tate-owned telecommunications tower operator PT Dayamitra Telekomunikasi (Mitratel) plans to raise up to Rp 24.9 trillion (US$1.76 billion) through its initial public offering (IPO), which would give it the biggest IPO in Indonesian history.
Mitratel, a subsidiary of Telkom, Indonesia’s largest telecommunications company, plans to sell 24.54 billion shares at Rp 775 to Rp 975 apiece through the Indonesia Stock Exchange (IDX), according to its IPO prospectus published on Tuesday.
The shares amount to a 29.85 percent stake in the company.
Forty percent of the funds raised will be used to build new towers and upgrade existing ones, 50 percent to acquire towers and other businesses and the remaining 10 percent as working capital.
“Through this IPO, Mitratel hopes to attract the attention of regional and international investors,” said Mitratel CEO Theodorus Ardi Hartoko in a press conference on Tuesday.
He added that over the next five years, Mitratel would focus on raising its tower tenancy ratio and “grabbing opportunities” in 5G-related businesses, such as fiber-optic cables and the internet of things (IoT). The company was also preparing long-term plans to expand operations in Southeast Asia and Asia Pacific.
Mitratel’s prospectus shows that its revenue grew 10.9 percent year-on-year to Rp 3.23 trillion in the January-June period, and its net profit grew 4.5 times to Rp 700.7 billion over the same period.
