Bakrie Telecom to rise $57.4m in IPO<\/p>\n
Soraya Permatasari, Bloomberg\/Jakarta<\/p>\n
PT Bakrie Telecom, the mobile-phone unit of PT Bakrie & Brothers,
\nsaid on Monday it plans to raise as much as Rp 577.5 billion
\n(US$57.4 million) selling a 29 percent stake in an initial share
\nsale in January.<\/p>\n
Bakrie Telecom, which had 348,392 subscribers as of Sept. 30,
\nis offering as many as 5.5 billion new shares at 105 rupiah each,
\nthe Jakarta-based company said in a statement published in the
\nBisnis Indonesia newspaper on Monday.<\/p>\n
Indonesian telecommunication companies are counting on rising
\ndemand for cell-phones in the country where fewer than one in
\nfour of its estimated 238 million people has access to a
\ntelephone. Bakrie, which plans to use the proceeds to expand its
\nnetwork, competes in a market dominated by PT Telekomunikasi
\nSelular (Telkomsel) and PT Indosat, which control 85 percent of
\nthe mobile market in Indonesia.<\/p>\n
\"The company is too small, it won't be able to compete against
\nbigger rivals like Telkomsel and Indosat,\" said Irvin
\nPatmadiwiria, who counts PT Telekomunikasi Indonesia (Telkom),
\nowner of Telkomsel, among the equivalent of $35 million he helps
\nmanage at PT Batavia Prosperindo Aset Manajemen in Jakarta.<\/p>\n
Patmadiwiria said he doesn't plan to buy Bakrie Telecom
\nshares.<\/p>\n
Indosat, Indonesia's second-biggest cellular operator, had
\n13.5 million subscribers to its mobile service as of October,
\nwhile Telkomsel, the nation's biggest mobile-phone operator, had
\n23.5 million subscribers as of Sept. 30.<\/p>\n
The nation's cell-phone users may double to 90 million in five
\nyears, making the country among the four largest mobile-phone
\nmarkets in Asia, Hasnul Suhaimi, president of Indosat, said on
\nNov. 24.<\/p>\n
Bakrie Telecom will use 90 percent of the proceeds, or as much
\nas Rp 519.8 billion, to build more base-transceiver stations and
\nbase-station controllers to expand its telecommunication network,
\nthe company said in the statement.<\/p>\n
The company will also offer one warrant, which can be
\nconverted into a share after six months, for every five shares in
\nthe initial public offering, the company said.<\/p>\n
PT Danatama Makmur is the arranger for the share sale, Bakrie
\nTelecom said.<\/p>\n
Bakrie Brothers, a diversified company controlled by the
\nfamily of Coordinating Minister for the Economy Aburizal Bakrie,
\nowns 71.2 percent of Bakrie Telecom. Bakrie Brothers' holding in
\nBakrie Telecom will be reduced to 50.4 percent after the share
\nsale.<\/p>",
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