MNC Skyvision, Indonesia’s largest pay-TV operator, plans to sell 1.412 billion shares — 20 percent of its enlarged capital — through an initial public offering later this month in order to raise funds for an expansion.
The company plans to offer the shares to investors from June 29 to July 3 and plans to list on the Indonesia Stock Exchange on July 9, according to a prospectus published in Bisnis Indonesia on Friday.
MNC Skyvision is a unit of Global Mediacom. The company is looking to raise up to Rp 2.45 trillion ($262 million) from the new listing.
The firm, controlled by media mogul Hary Tanoesoedibjo, set a price range for the offering of between Rp 1,460 and Rp 1,750 per share, Danareksa Securities, one of the underwriters, was reported by Reuters as saying.
The company posted net income of Rp 65.3 billion in 2011, compared to Rp 146.8 billion in 2010, according to the prospectus. The company hired MNC Securities, a related company, and Danareksa Sekuritas as financial advisers for the IPO.
Global Mediacom owns Skyvision through its integrated media arm, Media Nusantara Citra. Other media affiliates include free-to-air TV channels RCTI, Global TV and MNC TV, as well as the newspaper Seputar Indonesia.
The company will use some of the IPO proceeds to repay debt and finance its expansion plans, which include opening 20 new branch offices.
Skyvision’s pay television service includes the Indovision and Top TV brands.
Many Indonesian companies are tapping the local market for funds even as it faces heavy selling pressure triggered by offshore investors spooked by concerns over the euro zone market.
US private equity firm Saban Group has expressed interest to become an anchor investor for the deal, Reuters reported.
Growing incomes in Indonesia have fuelled demand for media services.