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Indonesian Pay-TV operator revives $400m IPO plan

  • Alvina Yuen
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PT MNC Skyvision, a unit of media group PT Global Mediacom and the largest pay TV company in Indonesia, will once again seek to raise up to $400 million via an initial public offering in June, in a bid to tap opportunities brought about by a rise in consumer spending.

The company is going to sell a 20-30% stake to the public. Several anchor investors, including US private equity firm Saban Capital Group, have expressed interest in purchasing a significant stake in the IPO, sources told Reuters.

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.

"Global Mediacom aims to launch the IPO in June and they're not too worried about demand now," said one of the sources.

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; the 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 subscribers to reach 1.1 million by the end of last year.

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