Indonesian pay-TV operator targets $260m IPO
PT MNC Skyvision has reduced the fundraising expectations for its IPO this summer from $400 million to $260 million. Saban Capital Group was previously reported to have expressed interest in becoming an anchor investor.
The floatation, scheduled for next month, is nevertheless set to become Indonesia's biggest IPO since palm oil firm Salim Ivomas Pratama raised $407 million in May 2011. A price range for the offering was set at IDR1,460-1,750 per share on Friday, according to Reuters.
A unit of media group PT Global Mediacom and the largest pay TV company in Indonesia, MNC Skyvision is going to sell a 20% stake - or 1.4 billion new and existing shares - to the public.
Last year, the company had planned to go public in the third quarter, but the plan was delayed due to pricing concerns amid weak investor sentiment and depressing market performance.
Indonesia has become the sweetheart of both local and international investors, largely thanks to its expanding consumer base. The middle classes have reached 35 million in the country, and this figure is expected to double in the next five years. Media companies stand to benefit as more people are willing to buy televisions and subscribe to pay-to-view channels.
According to official data, TV penetration in Indonesia is 60%, while pay-TV penetration only stands at 3%, with MNC Skyvision occupying 78% of that market with its two brands, Indovision and Top TV. MNC Skyvision expected its total subscriber base to reach 1.1 million by the end of last year.
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