Jakarta, CNBC Indonesia – The plan for Telkom’s subsidiary, PT Dayamitra Telekomunikasi alias Mitratel to go to the stock exchange, has the potential to set a new capital market record and beat the value of the public offering of PT Bukalapak.com Tbk (BUKA).
Mitratel plans to offer as many as 25.54 billion shares or a maximum of 29.85% with this share price offered at a price range of Rp 775-Rp 975/share. Thus, the company will obtain funds of Rp 19.79 trillion to Rp 24.90 trillion from this public offering.
Praus Capital’s Head of Research, Alfred Nainggolan, revealed that Mitratel has the potential to shift BUKA if the IPO price is above Rp 835 per share and that is very possible.
Alfred assessed that Mitratel’s IPO absorption could be maximized due to various positive catalysts, among others, firstly, foreign investors have relatively large interest in the issuers of the telecommunications sector.
As of September 2021, it was recorded that foreign ownership in the telecommunications sector reached 45.67%. In other telecommunication tower operator issuers, such as PT Tower Bersama Tbk (TBIG) and PT Sarana Menara Nusantara Tbk (TOWR), foreign companies have 23.3% and 35.9% ownership, respectively.
“The high interest in foreign buying in telecommunication issuers, we are optimistic that foreigners have a great interest in the Mitratel IPO,” Alfred told CNBC Indonesia, Tuesday (26/10/2021).
Second, a number of large institutional fund management institutions such as the Abu Dhabi Investment Authority (ADIA) and the Government of Singapore Investment Corporation including the Indonesia Investment Authority (INA) expressed their interest in becoming anchors investors and will assist in marketing the IPO.
This is as emphasized by the Deputy Minister of SOEs Kartika Wirjoatmodjo that the Indonesia Investment Authority (INA) participated in ‘marketing’ Mitratel’s IPO shares to foreign investors, including a number of overseas sovereign wealth funds (SWF).
Alfred added, in terms of prospects, the tower industry still has the potential to grow. This can be seen from the ratio of the number of users and the number of towers in Indonesia which is not yet ideal.
Second, as Indonesia’s geographical condition is an archipelagic country, the role of telecommunication towers becomes important in telecommunication infrastructure.
Third, the transfer of ownership of towers from telecommunications operators to tower operators makes telecommunications companies’ dependence on tower operator services even stronger.
“The growth in users and consumption of the Indonesian people, which is still large for telecommunications spending, will continue to spur capital expenditures for telecommunications operators and one of the biggest is network expansion,” he added.
(hps / hps)
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