Indonesia Wealth Fund Commits $800 Million in Mitratel IPO
(Bloomberg) -- Indonesia’s new wealth fund has pledged $500 million to $800 million of investment in PT Dayamitra Telekomunikasi’s initial public offering, according to a deputy minister.
Indonesia Investment Authority, as the fund is known, will enter as an anchor investor through the bookbuilding process, without privileges, Kartika Wirjoatmodjo, a deputy minister at the State-Owned Enterprises Ministry, said in a Monday interview. The wealth fund will participate in the IPO with its global investor partners, he added.
Mitratel, as Dayamitra is called, is seeking to raise as much as $1.35 billion in a Jakarta IPO, according to terms of the deal obtained by Bloomberg News. The infrastructure services unit of state-owned PT Telkom Indonesia could increase the size of the offer to as much as $1.8 billion, according to a prospectus. That would make it the country’s biggest-ever IPO, putting it ahead of online marketplace PT Bukalapak’s $1.5 billion listing earlier this year.
Indonesia Investment Authority lets investors place money in sub-funds that then invest in local infrastructure, health care, tourism, technology sectors as well as the development of a new national capital city planned on the island of Kalimantan.
Mitratel and its parent Telkom Indonesia both confirmed they were in talks with several wealth funds, including the Indonesia Investment Authority, but declined to give details of the discussions until the bookbuilding process is completed. Indonesia Investment didn’t immediately respond to Bloomberg request for comment.
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