(Bloomberg) -- The infrastructure services unit of state-owned PT Telkom Indonesia raised about $1.3 billion in a Jakarta initial public offering, according to people familiar with the matter, making 2021 the country's biggest IPO year in more than a decade.
PT Dayamitra Telekomunikasi priced its shares at 800 rupiah apiece, the people said, asking not to be identified because the information wasn't public. The unit, also known as Mitratel, increased the number of shares sold in the offering, one of the people said. The shares are expected to list on Nov. 22, they said.
“The demand is very strong and we appreciate the support from investors,” Mitratel Investment Director Hendra Purnama said in response to a query from Bloomberg News. The IPO's size hasn't been finalized yet, Purnama added. Telkom Indonesia didn't immediately respond to a request for comment.
With a $1.3 billion share sale, Indonesia's IPO market would be set for a fresh record year. The roughly $3.4 billion raised including Mitratel would surpass the previous top annual volume of $3 billion in 2010, according to calculations by Bloomberg.
Online marketplace PT Bukalapak.com's $1.5 billion debut in August remains the country's biggest offering ever.
Mitratel manages more than 28,000 telecommunications towers throughout Indonesia, with more than half situated outside Java. Mitratel plans to use proceeds from the IPO to buy 6,000 more towers, Mitratel's Purnama said in a briefing on Oct. 26. Going forward, it will focus on the 5G sector while charting out a longer-term expansion in Southeast Asia and Asia more broadly.
The unit originally planned to sell about 19.5 billion shares, according to terms of the deal seen by Bloomberg News. It had marketed shares at 775 rupiah to 975 rupiah each, the terms show.
Indonesia's wealth fund Indonesia Investment Authority has pledged $500 million to $800 million of investment in Mitratel's IPO, according to a deputy minister.
HSBC Holdings Plc, JPMorgan Chase & Co., Morgan Stanley, PT BRI Danareksa Sekuritas and PT Mandiri Sekuritas are joint global coordinators for the offering.
©2021 Bloomberg L.P.
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