Telkom to bring road show to 30 cities
JAKARTA (JP): PT Telekomunikasi Indonesia (Telkom), the state- owned domestic telecommunications operator, will launch a series of road shows next month in conjunction with its plan to float shares on both the international and domestic stock markets by the end of this year.
The company's president Setyanto P. Santosa said here Thursday that the road show, from Oct. 9 until the middle of November, will include a number of overseas cities.
"We will first launch a presentation on Oct. 9 in Jakarta before proceeding to Surabaya in East Java, Medan in North Sumatra, Semarang in Central Java, Bandung in West Java, Tokyo, Hong Kong, Singapore, Sydney and San Francisco on the following days," he said.
"We will hold the promotional activities in 30 cities, with a total of 130 planned meetings," Setyanto said. He refused to give any further information.
Telkom plans to float its shares on the New York Stock Exchange (NYSE), the London Stock Exchange and the Jakarta Stock Exchange.
Four major world investment banks have been appointed to act as global coordinators for Telkom's overseas listings, including three U.S. investment banks: Merrill Lynch, Goldman Sachs and Lehman, as well as S.G. Warburg of Britain.
Coordinator
Meanwhile, four local securities companies, the state-owned Danareksa, PT Makindo, PT Bahana and PT Jardine Flemming Nusantara, have been appointed as coordinators for the sales of Telkom's shares on the domestic market.
The government has also appointed a number of international bodies to support Telkom's public offering. They include Arthur Andersen of the U.S. as auditor and Baker & McKenzie as legal consultant.
Telkom, which is still undergoing a restructuring program after slashing the number of its area offices, directorates and personnel, also plans to offer its shares on the Tokyo Stock Exchange without listing them there.
Setyanto said that a number of Japanese investment banks, including Nomura, Daiwa, Nikko, Daiichi, have been selected as members of a syndicate to assist Telkom in the share sales in Tokyo.
"The underwriters, the Capital Market Supervisory Board and the Ministry of Finance are still discussing the price of the shares, including a possible discount in Indonesia."
Telkom's plans for an initial public offering (IPO) will make it the second state company to go international after PT Indosat, the operator of international telecommunication services which was successful in floating 25 percent of its shares on the New York Stock Exchange late last year. The state-owned tin mining company, PT Tambang Timah, is expected to follow Telkom later this year by listing its shares in London.
Indosat raised US$799 million from the sales of its ordinary shares in New York and around Rp 650 billion ($285.7 million) from the domestic sales. Merrill Lynch was the global coordinator for Indosat's overseas listing, while Danareksa acted as the coordinator for the sales of its shares on the domestic exchanges. (icn)