Indonesia’s listed telecommunications tower operator PT Solusi Tunas Pratama, partly owned by private-equity firm Carlyle Group, plans to raise up to $400 million by selling share to institutional and retail investors, a report said, citing people aware of the developments.
“Solusi Tunas will increase the outstanding shares on the stock exchange by offering shares to institutional and retail investors. The sale of shares is likely to take place in the second quarter of this year,” the Wall Street Journal said in a recent report.
Currently, most of the stock is owned by the US private equity firm Carlyle Group. The stake sale is yet another instance of PE firms looking to book profits amid the strengthening of exchanges of Southeast Asia.
This year, the stock price index in the Indonesia Stock Exchange (IDX) has increased by 4 per cent, while Solusi Tunas shares increased 28 per cent over the same period.
The corporate action in the Southeast Asian market looks more intense this year, after a cool-calm at the beginning of the year. However, investors are still relatively weak, considered the uncertain global conditions.
The raising funds in the equity markets of Southeast Asia has reached $ 4,6 billion this year or an increase of 28 per cent year over year, according to data from Dealogic. However, most of this amount came from the telecommunications company IPO Jasmine Broadband Infrastructure Fund Growth in Thailand. Listing valued at $ 1,7 billion, which still the largest in Southeast Asia in 2015.
Also read: Thailand SEC approves $1.7b JAS Infra fund
Solusi Tunas is the third largest telecommunications tower operator in Indonesia. It has nearly 6000 towers, including 3.500 new tower of PT XL Axiata Tbk purchased last year. Carlyle invested around $100 million in October 2012.
Over the past year, Solusi Tunas posted the revenue of Rp 1,07 trillion, or $ 81,6 million, up to 27,59 per cent compared to 2013. However, the company booked a net loss of Rp 373,93 billion, equal to $ 28,98 million last year, compared to 2013, which posted a net profit of Rp 197,59 billion.