Indonesian firm PT Mobile-8 Telecom, a mobile operator which offers services based on CDMA technology, says it plans to sell 3.9 billion shares, or 19.91% of its enlarged equity, via an initial public offering (IPO) slated for 22-24 November. Although the company has yet to fix the IPO price, XFN-Asia reports that three local companies – PT Bhakti Securities, PT CIMB-GK Securities Indonesia and PT Danareksa Sekuritas – will underwrite the sale. Mobile-8 Telecom plans to use at least 57% of the proceeds of the sale to expand and upgrade its networks in Java, Lombok, Bali, Sumatra, Kalimantan and Sulawesi. The remainder will be used for working capital. It is looking to boost network capacity from 2.2 million to four million by the end of 2007, rising to seven million by end-2008.
According to TeleGeography’s GlobalComms database, Mobile-8 is owned by Bimantara Citra (70.52%), Centralindo Panca Sakti (9.54%), Asialink (8.5%), Qualcomm, Samsung, KTF Corp of Korea and Converse. In March 2006 a consortium led by Indonesia’s Sinar Mas Group turned its back on a plan to acquire a stake in network operator Mobile-8 Telecom as a result of irreconcilable disagreements among its members. Mobile-8 had approximately 1.2 million subscribers at the end of June 2006.