Logo of Phnom Penh Post newspaper Phnom Penh Post - State-owned Mitratel eyes $1.8B in biggest IPO in Indonesia ever

State-owned Mitratel eyes $1.8B in biggest IPO in Indonesia ever

Content image - Phnom Penh Post
Telkom subsidiary Mitratel is expected to become Indonesia’s ‘biggest independent telecom tower player’ after acquiring some 6,000 towers using the initial public offering’s (IPO) proceeds. TELKOM

State-owned Mitratel eyes $1.8B in biggest IPO in Indonesia ever

Indonesian state-owned telecommunications tower operator PT Dayamitra Telekomunikasi (Mitratel) plans to raise up to 24.9 trillion rupiah ($1.75 billion) through its initial public offering (IPO), which would give it the biggest IPO in the Southeast Asian country’s history.

Mitratel, a subsidiary of Telkom, Indonesia’s largest telecommunications company, plans to sell 24.54 billion shares at 775-975 rupiah apiece through the Indonesia Stock Exchange (IDX), according to its IPO prospectus published on October 26.

The shares amount to a 29.85 per cent stake in the company. Forty per cent of the funds raised will be used to build new towers and upgrade existing ones, 50 per cent to acquire towers and other businesses and the remaining 10 per cent 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 October 26.

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 fibre-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 per cent year-on-year to 3.23 trillion rupiah in the January-June period, and its net profit grew 4.5 times to 700.7 billion rupiah 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 22 trillion rupiah through an IPO in July. Bukalapak sold 25.76 billion shares at 850 rupiah 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 non-affiliated 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”.



  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Banteay Meanchey gunfight sees 15 Thais arrested, three officers injured

    The Banteay Meanchey Military Police have arrested 15 Thai suspects and their accomplices after a gun battle between two Thai groups caused injuries to three police officers in the early hours of November 21, local authorities said. National Military Police spokesman Eng Hy said that according to

  • Locally-trained commercial pilots to lift Cambodia’s aviation standard

    The Kingdom is boosting its civil aviation sector with the establishment of a flight school with a local airline to meet growth demands once air travel recovers At 22, First Officer Reachta Lim is the youngest commercial pilot in Cambodia. He flies with the national flag