Reuters – MNC Skyvision Aims for $260M IPO

PT MNC Skyvision is looking to raise up to 2.45 trillion rupiah ($260.08 million) in an initial public offering in July that is set to become Indonesia’s biggest float in 2012 after setting a price range on Friday, Reuters reported Friday. Indonesia’s largest pay TV provider, controlled by domestic media mogul Hary Tanoesoedibjo, has set a price range for the offering at between 1,460 rupiah to 1,750 rupiah per share.

 

(Reuters) – PT MNC Skyvision is looking to raise up to 2.45 trillion rupiah ($260.08 million) in an initial public offering in July that is set to become Indonesia’s biggest float in 2012 after setting a price range on Friday, an underwriter said.

 

Indonesia’s largest pay TV provider, controlled by domestic media mogul Hary Tanoesoedibjo, has set a price range for the offering at between 1,460 rupiah to 1,750 rupiah per share, Danareksa Securities said.

 

It will be Indonesia’s biggest IPO since palm oil firm Salim Ivomas Pratama raised $407 million in May 2011, if it priced at the top of the range.

 

“The company’s business nature is not really affected by global sentiment,” Bambang Rudijanto Tanoesoedibjo, Skyvision’s chief executive told Reuters.

 

“This is a consumer-play stock and when the crisis happens, people tend to go for TV instead to cinema theaters.”

 

The firm aims to sell 1.4 billion new and existing shares, equal to 20 percent of the company’s enlarged capital, according to the IPO prospectus. About 70 percent of the IPO proceedings will be used for capital expansion and the rest for debt payment to PT Bank Rakyat Indonesia and various parties, it said.

 

RELATIVELY EXPENSIVE VALUATION

 

The IPO has been delayed several times due to market uncertainty and the firm previously sought to raise up to $400 million.

 

U.S private equity firm Saban Group has expressed interest to become an anchor investor for the deal, Tanoesoedibjo told Reuters in an interview last month.

 

The firm was valued at 10.6 to 12.5 times enterprise value to EBITDA, a valuation measure that includes debt. Using that measure, it is relatively expensive compared with rivals such as PT First Media which is valued at 6.3 times, according to Thomson Reuters’ Starmine.

 

MNC Skyvision is Indonesia’s market leader in satellite pay TV with 1.1 million paying subscribers at the end of 2011 through its two brands Indovision and Top TV.

 

The company expects to get 1.7 million paying subscribers by the end of 2012. Indonesia’s pay TV market penetration rates overall still remain low, with just 3 percent of all households having pay TV compared to 60 percent for television.

 

The firm appointed Morgan Stanley and JPMorgan as joint global coordinators for the IPO. ($1 = 9,420 rupiah) (Reporting by Fathiya Dahrul and Andjarsari Paramaditha, Writing by Janeman Latul; Editing by Neil Chatterjee and Muralikumar Anantharaman)