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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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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.
The value of the tower operator’s IPO is slated to exceed that of Bukalapak, the previous record holder, which raised Rp 22 trillion through an IPO in July. Bukalapak sold 25.76 billion shares at Rp 850 apiece.
Mitratel claims to have over 28,000 towers, which is on par with privately owned PT Profesional Telekomunikasi Indonesia (Protelindo), which claims it will have 28,000 towers after completing its acquisition of rival operator PT Solusi Tunas Pratama.
Mitratel investment director Hendra Purnama said the company aimed to add 6,000 towers, which could either be acquired from sister companies or from nonaffiliated companies.
Telkom’s 2020 annual report shows that the group had 17,300 towers aside from those under Mitratel, as of December of last year.
Telkom president director Ririek Adriansyah said in a statement that the IPO was expected to help Mitratel “become the biggest independent telco not only in Indonesia but in Southeast Asia”.
