Inti Bangun the Latest To Tap Public Offering
Inti Bangun Sejahtera, a company that provides telecommunication towers, plans to raise Rp 154.3 billion ($16 million) from selling shares in an initial public offering next week.
The company will offer 15 percent of its enlarged stake, or 154.3 million shares, to the public from Aug. 23-27. It plans to list the shares on the local bourse on Aug. 31, it said in a brief prospectus published in Investor Daily on Thursday.
Inti Bangun Sejahtera has named Sinarmas Sekuritas and OSK Nusadana Securities Indonesia as underwriters for the IPO plan.
Many Indonesian companies are raising funds from the public to capitalize on a strong appetite for IPOs amid a global slowdown. The Indonesia Stock Exchange (IDX) has said that it maintained its IPO target of 25 companies this year.
Indonesia’s benchmark stock index has gained 8.9 percent so far this year, lagging behind some of its peers in the region. Thailand’s bourse has gained 19 percent and Singapore’s 16 percent, although Malaysia’s has risen only 7.8 percent.
Still, analysts in Jakarta said Indonesian high yield assets remained attractive for investors in the country and overseas.
The government forecast the country’s economy to expand by 6.5 percent this year. The economy grew 6.4 percent in the second quarter from a year earlier after a gain of 6.3 percent in the first quarter, Indonesia’s Central Statistics Agency (BPS) announced last week.
Inti Bangun Sejahtera will use 85 percent of the proceeds from the IPO to help finance the its business plan. It will use the rest to bolster its working capital, according to the prospectus.
Sinarmas president director Kokaryadi said in June that the company was in the process of acquiring 705 telecommunication towers from Smartfren Telecom.
Inti Bangun Sejahtera said in the prospectus that it had built 50 telecommunication towers this year and 250 towers next year. Investment for each tower is valued at around Rp 1 billion.