XL Axiata, the most indebted of Indonesia’s listed wireless carriers, is weighing several fundraising options including selling stock to existing investors through a rights offering, the news wires reported, according to people in the know.
The company could sell shares in the first half of next year depending on market conditions, the people said.
XL Axiata said earlier this year it’s seeking to strengthen its balance sheet and focus on more profitable subscribers.
A spokesperson for XL Axiata, Turina Farouk said in a text message the company is “still open for any options to raising funds.”
The company’s net debt has more than doubled in three years to 25.7 trillion rupiah ($1.8 billion) at the end of September, from 12.5 trillion rupiah the same time in 2012, according to data compiled by Bloomberg.
XL Axiata has accumulated total debt equal to 216 per cent of its total equity at the end of the latest quarter, the highest ratio among Indonesia’s eight listed wireless carriers, Bloomberg pointed out from its data.
The telecommunications unit said in October that it eliminated all of its unhedged US dollar borrowings, repaying part of the $580 million of unhedged debt early and converting the rest to rupiah borrowings.
When the company bought Saudi Telecom Co’s Indonesian unit in 2013 to increase its service coverage, it had also assumed $865 million of the carrier’s debt, after paying a nominal fee to acquire the business .
It sold 3,500 telecommunication towers last year to PT Solusi Tunas Pratama for 5.6 trillion rupiah.