Mobile-8 plans to sell 19.91 pct stake in IPO

Jakarta (Antara News) - PT Mobile-8 Telecom, a CDMA-based mobile phone operator, said it plans to sell 3.9 bln shares or 19.91 pct of its enlarged capital through an initial public offering and has yet to fix the IPO price.

The offer is slated for Nov 22-24. The shares will be listed on the Jakarta Stock Exchange on Nov 29.

PT Bhakti Securities, PT CIMB-GK Securities Indonesia and PT Danareksa Sekuritas have been appointed to underwrite the IPO, XFN-Asia reported.

Mobile-8 said it will use at least 57 pct of the proceeds to purchase equipment needed to support its cellular service expansion plan in Java,
Lombok, Bali, Sumatra, Kalimantan and Sulawesi. The rest will be for working capital.

PT Bimantara Citra is Mobile-8's largest shareholder with a 75.87 pct stake. Other shareholders are Asia Link, Centralindo Pancasakti Selular, PT TDM Aset Manajemen, US-based Qualcom Inc and KT Freetel Co Ltd.

Mobile-8 has said it is aiming to expand the capacity of its network to 4
mln subscribers by the end of next year and to 7 mln by the end of 2008, from the estimated 2.2 mln at the end of this year.

As of Aug 31, its subscriber base stood at 1.4 mln. (*)
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