Indonesia's Mobile-8 IPO looks expensive - UOB Kay Hian

Jakarta (Antara News) - PT Mobile-8's indicative price range of 200-240 rupiah per share for its planned initial public offering (IPO) of 3.9 bln shares is "expensive" compared to its telecom peers, brokerage firm UOB Kay Hian said.

The IPO is slated for Nov 22-24.

"At an indicative IPO offer price of 200-240 rupiah per share, this puts its valuation at a P/E of 23.3 to 28 times prospective 2007 earnings. This would make Mobile-8 nearly twice as expensive as its closest peer Bakrie Telecom, another small CDMA operator with a small market cap, which is currently valued at 12.2 times," UOB was quoted by XFN-Asia asa saying in a note.

It added that the shares appear expensive when compared to the two telecom majors PT Telekomunikasi Indonesia and PT Indosat, as well.

Mobile-8, a 75.9 pct-owned unit of diversified conglomerate PT Bimantara Citra, operates the US-based CDMA system and at end June its market share stood at 2.3 pct with 1.3 mln subscribers.

UOB said the country's top three operators -- PT Telekomunikasi Indonesia, PT Indosat and PT Excelcomindo had a 95.8 pct share of the mobile phone market as of end June. (*)
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