Mobile phone distributor PT Tiphone Mobile Indonesia Tbk plans to sell 2.67 billion shares, or 40.08% of its total equity, through an initial public offering by early next month.
Tiphone is own by Hengky Setiawan and his brother Welly Setiawan through PT Upaya Citra Sejahtera. It is plans to offer it shares within the range of Rp250 to Rp350 per unit in 3-5 January. It will also emit 1.34 billion warrants, which will be given as sweetener to the public shareholders. Every purchase of two new shares will get a free warrant. These securities can be changed into shares in five year period after it listed.
The company is hoping to pocket Rp700 billion-Rp900 billion of fresh funds from the public by listing it shares on Indonesia stock exchange (IDX). It is plan to be listed in January 12. PT Sinarmas Sekuritas is the lead underwriter for the IPO. Tiphone plans to use 40% the proceeds from the IPO to repay debt of it unit PT Telesindo Shop, 28% for expansion, and 32% for the company’s and units working capital.
“With the additional funds from capital market, the company will grow into a better direction especially with the increasing growth in the telecommunications sector,” says Garuda Sugardo, president director of Tiphone, at the press conference. Garuda is a former director in Telkomsel, Indosat, and Telkom.
Garuda adds the expansion plan will include opening more store and after sales network across the country, while at the same time strengthening Tiphone Mobile brand. It also plans to develop it business in mobile content services, mobile data, and mobile multimedia.
Telecommunication, he says, is a sector which will grow 20% per annum. There will be 30 million to 40 million new users every year, while the market size for the gadget will reach 60 million-70 million unit.
By the end of the year, Tiphone eyes Rp 6 trillion of sales and it grows to Rp 8 trillion in 2012. For the first half of the year, the company already booked Rp2.98 trillion of revenue, where most of it is coming from the sales of prepaid voucher. The company’s prepaid voucher is handling by Telesindo.