PT Mobile-8 Telecom (Mobitel) will issue 3.9 billion shares on the Jakarta Stock Exchange later next month to raise fresh funds for financing the expansion of its Code Division Multiple Access (CDMA)-based wireless telecommunication networks throughout the country.
"Mobitel is committed to increasing its mobile telephone capacity to 6.9 million in Java, Bali, Sumatra, Kalimantan, Sulawesi and Lombok," said Orias Petrus Moedak, a director of PT Danareksa Sekuritas, which will underwrite the initial public offering from Nov. 22 to 24.
Investors will welcome the share issue because telecommunications is a growing industry and Indonesia still has a potential market of at least 100 million subscribers for CDMA-based cellular telephones, Moedak added.
The International Telecommunication Union estimated in a recent study that with a cellular telephone penetration of a mere 21.1 percent (of 220 million people), the mobile telephone market in Indonesia is still very young, offering Mobitel big opportunities to expand its Fren mobile telephone.
After the IPO, Mobitel, which has raised its paid up capital to more than Rp 1 trillion (US$107.5 million), will be 19.91 percent owned by the investing public, 60.76 percent by Bimantara, 6.03 percent by Asia Link, 5.17 percent by Qualcomm with the remaining shares held by several other institutional investors.
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