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Mitratel makes weak trading debut following IPO

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Shares of Indonesia’s Mitratel fell as much as 3.12% on its trading debut on Monday after the launch of the second biggest initial public offering (IPO) this year.

The shares traded as low as 775 rupiah a piece, down from the 800 rupiah price that was set at its IPO last week, where the company raised 18.79 trillion rupiah ($1.32 billion).

The share price has since rallied back to around 785-790 rupiah per share.

The company said earlier this month that it planned to raise $1.68 billion in the IPO and that 40% of the proceeds would be reinvested.

Mitratel added that 50% of that stake would go into inorganic capital expenditure and 10% into working capital and “other company needs”.

The company also said it would be looking to expand into the South East Asia market and Asia-Pacific.

Mitratel is aiming to acquire 6,000 towers to boost its performance and the firm currently operates over 28,000 telecom towers which represents around 31% of the market.