PT Dayamitra Telekomunikasi (Mitratel), a state-owned telecommunications tower operator, plans to raise up to IDR25 trillion through an initial public offering (IPO) in Indonesia. The company intends to offer 24.54 billion shares on the Indonesia Stock Exchange (IDX) for IDR775-975 each.
Indonesia Investment Authority (INA), the country’s sovereign wealth fund, has committed to an investment of around IDR7.1 trillion to IDR11.4 trillion in Mitratel’s IPO. INA will participate as an anchor investor through a regular book building process without privilege.
The total shares offered in the IPO will represent a 29.85 per cent stake in Mitratel. Out of the funds raised, 40 per cent will be used for the deployment of new telecommunications towers as well as upgrading current towers while 50 per cent of the revenue will be used to fund the acquisition of towers and other telecom businesses. The remaining 10 per cent will be used as working capital.
Over the next five years, Mitratel will focus on increasing tower tenancy ratio and expanding development of fibre-optic cables and the internet of things (IoT). Long-term plans to expand operations in Southeast Asia and Asia Pacific are also being developed by the corporation.