Tuesday, October 03, 2006

Public Offerings: Mobile-8 & CP Prima

Cellular operator PT Mobile-8, a subsidiary of PT Bimantara Citra Tbk, launched the initial public offering (IPO) of 3.9 billion shares (19.9% of outstanding) at Jakarta Stock Exchange (JSX) to finance expansions and working capital.

According to the company's prospectus published today, Mobile-8 booked net loss of Rp26.5 billion in the first half. Two weeks ago, Lehman Brothers signed US$70 million loan (Libor + 6%) to Mobile-8.
Funds from Lehman + IPO would finance the company's ambitious plan to boost cellular subscribers from 2.2 million to 7 million by the year 2008.
Meanwhile, CP Prima has decided to resume the IPO. In second quarter, CP Prima announced its plan to offer 6.5 billion ordinary shares, among others, to pay debt at Barclays Bank and business expansion. But according to its new prospectus today, CP Prima offers only 3 billion ordinary shares (equals to 16.8% outstanding shares). But CP Prima also offers 6 billion warrants that would potentially make public control 45% shares after exercises of the warrants.




Anonymous Anonymous said...

Leaving Danareksa without transparent has arisen questions among investors...What would happen between Danareksa and CP Prima?? Why did CP Prima left behind Danareksa?

October 04, 2006 7:09 PM  

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