Mitratel (PT Dayamitra Telekomunikasi), an Indonesian tower company which is a wholly-owned subsidiary of Telkom Indonesia, launched its initial public offering (IPO) process which targets raising up to $1.76bn USD (24.9 trillion Indonesian Rupiah).

Initial Public Offering (IPO) Process – Mitratel

Mitratel plans to IPO on the Indonesia Stock Exchange at a price between 775 to 975 Indonesian Rupiah per share. Specifically, the company will be offering primary shares representing 29.9% of the company. Indeed, this implies a capital raise of $1.40bn to $1.76bn USD (19.8 to 24.9 trillion Indonesian Rupiah). In terms of timing, Mitratel aims to complete its IPO between November 18th and November 22nd.

Use of Proceeds

Mitratel intends to direct 50% of its IPO proceeds towards inorganic M&A activity. For example, Mitratel’s inorganic M&A activity post-IPO could include the acquisition of 6.0k towers from third-parties (i.e., not affiliated with Telkom Indonesia). Alternatively, 40% of Mitratel’s IPO proceeds will fund organic expansion, such as new build-to-suit (BTS) tower sites.

Cornerstone Investors

Indonesia’s Ministry of State Owned Enterprises (SOEs) has previously noted that both foreign and local sovereign wealth funds will be cornerstone investors in Mitratel’s IPO. Furthermore, press reports have highlighted that sovereign wealth funds from Abu Dhabi and Singapore are possible foreign cornerstone investors.

Notably, the Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund, is currently a ~34% shareholder in Indonesia tower company EdgePoint Infrastructure, which is backed by DigitalBridge.

Mitratel – Pre-IPO Towers Business

Mitratel owns 28.0k towers, pro forma for its pending $435m USD acquisition of Telkomsel’s 4.0k towers. The company’s tower sites have a tenancy ratio of 1.57x, which equates to 44.0k tenants with equipment on its infrastructure. Geographically, 57% of the company’s towers are located outside of Java, Indonesia and 43% are located in Java, Indonesia.

Financial Performance – First-Half of 2021

In the first-half of 2021, Mitratel reported revenue of ~$220m USD (3.2 trillion Indonesian Rupiah), a 10.9% increase year-over-year. At the same time, the company generated adjusted EBITDA of ~$168m USD (2.45 trillion Indonesian Rupiah). Therefore, the company’s EBITDA margin was 76.5% in H1 2021, a 9.9% improvement year-over-year.


Mitratel’s revenue derives from all major Indonesian wireless carriers, including Telkomsel (54%), Indosat Ooredoo (11%), and Hutchison 3 Indonesia (11%). Notably, Telkomsel is a joint venture between Telkom Indonesia, which owns 65% of the company and Singtel which controls the remaining 35% ownership interest.

Independent Tower Companies in Indonesia

Post-IPO, Mitratel will be Indonesia’s second largest (quasi) independent tower company by tower count. Below are Indonesia’s four largest independent tower companies:

Adam Simmons covers Towers for Dgtl Infra, including American Tower (NYSE: AMT), Crown Castle (NYSE: CCI), SBA Communications (NASDAQ: SBAC), Cellnex Telecom (BME: CLNX), Vantage Towers (ETR: VTWR), IHS Holding (NYSE: IHS), and many more. Within Towers, Adam focuses on the sub-sectors of ground-based cell towers, rooftop sites, broadcast / radio towers, and 5G. Adam has over 7 years of experience in research and writing for Towers.


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