Mobile-8 Telecom to launch IPO in November

15 Sep 2006

According to reports from the Investor Daily, quoting PT Bhakti Investama president Wishnu Handoyo, the Indonesian wireless operator Mobile-8 Telecom is planning to launch an initial public offering (IPO) in November. The offering is being underwritten by Bhakti and state-run PT Danareksa, and although the size of the IPO has yet to be finalised, it is understood to be around 20% to 25%. The proceeds could raise as much as USD100 million.

According to TeleGeography’s GlobalComms database, Mobile-8 Telecom was set up at the end of 2002, and launched commercial services on 8 December 2003. In 2004 it acquired three AMPS mobile operators — Komselindo, Metrosel and Telesera — which were failing in the face of competition from bigger rivals. Komselindo launched in 1995 and covered Jakarta, Sumatra, West Java and Sulawesi. Metrosel rolled out services that year in East and Central Java, and Telesera operated AMPS services in Bali, Kalimantan and Southern Sumatra. Mobile-8 shareholder Qualcomm committed to making a USD25 million investment in the cellco to support the implementation of CDMA2000 1x and 1xEV-DO networks. Mobile-8 signed a USD1 million contract with Emblaze Systems to launch the latter’s EMplatform online portal across its CDMA2000 1xRTT network in Jakarta, and began deploying a BREW system there in the first quarter of 2004.

Bimantara owns 70.5% of Mobile-8 Telecom. Other shareholders include PT Dwimarga Dwiutama Asia Link, PT Centrallindo Pancasakti Cellular, Qualcomm and Korea Telecom Freetel.

Indonesia, Mobile-8 Telecom