Telkom to bring road show to 30 cities

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)