IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Bottom-Up

Dayamitra Telekomunikasi PT / Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/pt-dayamitra-telekomunikasi" target="_blank" data-smartkarma-citation="entities:34741:1" rel="noopener">Mitratel (1319Z IJ)</a> is the largest telco tower owner and operator in Indonesia based on the number of telecommunication towers owned as of 30 June 2021, according to Analysys Mason. Mitratel is a subsidiary of <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a>.</div>
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<div>Mitratel has launched an IPO to raise IDR20.0-24.9 trillion ($1.4-1.8 billion) at the IPO price range of IDR775-975 per share. Bookbuilding will close on 4 November and the shares are set to list on 22 November. </div>
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<p>In <a href="https://www.smartkarma.com/insights/mitratel-dayamitra-telekomunikasi-ipo-initiation-control-tower" target="_blank" data-smartkarma-citation="insights:59620" rel="noopener">Mitratel (Dayamitra Telekomunikasi) IPO Initiation: Control Tower</a>, we noted that in comparison to other major regions (US, Western Europe, China and India), the tower industry in Indonesia offers an attractive mix of high EBITDA margin, low capex, no colocation discount and no obligation to provide power in the contract. The tower industry also benefits from predictable revenue due to long-term contracts and high renewal rates. Mitratel's contracted revenue based on agreements with customers for all types of leases is IDR30.7 trillion, and the average remaining life of lease agreements is 6.3 years, as of 30 June 2021. We concluded that Mitratel's fundamentals tick all the right boxes. </p>
<div class="content-highlight"><p>Our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO.</p></div>
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Mitratel (1319Z IJ) is the largest telco tower owner and operator in Indonesia based on the number of telecommunication towers owned as of 30 June 2021, according to Analysys Mason. Mitratel is a subsidiary of Telekomunikasi Indonesia (TLKM IJ).

Mitratel has launched an IPO to raise IDR20.0-24.9 trillion ($1.4-1.8 billion) at the IPO price range of IDR775-975 per share. Bookbuilding will close on 4 November and the shares are set to list on 22 November. 


In Mitratel (Dayamitra Telekomunikasi) IPO Initiation: Control Tower, we noted that in comparison to other major regions (US, Western Europe, China and India), the tower industry in Indonesia offers an attractive mix of high EBITDA margin, low capex, no colocation discount and no obligation to provide power in the contract. The tower industry also benefits from predictable revenue due to long-term contracts and high renewal rates. Mitratel's contracted revenue based on agreements with customers for all types of leases is IDR30.7 trillion, and the average remaining life of lease agreements is 6.3 years, as of 30 June 2021. We concluded that Mitratel's fundamentals tick all the right boxes. 
Our valuation analysis suggests that the IPO price range is attractive. Overall, we would participate in the IPO.


Mitratel (Dayamitra Telekomunikasi) IPO: Valuation Insights

Equity Capital Markets

Dayamitra Telekomunikasi PT / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/pt-dayamitra-telekomunikasi" target="_blank" data-smartkarma-citation="entities:34741:1" rel="noopener">Mitratel (1319Z IJ)</a> is the largest telco tower owner and operator in Indonesia based on the number of telecommunication towers owned as of 30 June 2021, according to Analysys Mason. Mitratel is a subsidiary of <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ)</a>.</p><p>Mitratel has launched an IPO to raise IDR20.0-24.9 trillion ($1.4-1.8 billion) at the IPO price range of IDR775-975 per share. Bookbuilding will close on 4 November and the shares are set to list on 22 November. </p><p>Indonesia's tower industry is fast consolidating into an oligopoly with three large tower companies which are Mitratel, <a href="https://www.smartkarma.com/entities/sarana-menara-nusantara-pt" target="_blank" data-smartkarma-citation="entities:6848:1" rel="noopener">Sarana Menara Nusantara (TOWR IJ)</a> (Protelindo) and <a href="https://www.smartkarma.com/entities/tower-bersama-infrastructure" target="_blank" data-smartkarma-citation="entities:3537:1" rel="noopener">Tower Bersama Infrastructure (TBIG IJ)</a>. In comparison to other major regions (US, Western Europe, China and India), the tower industry in Indonesia offers an attractive mix of high EBITDA margin, low capex, no colocation discount and no obligation to provide power in the contract.</p><div class="content-highlight"><p>The tower industry also benefits from predictable revenue due to long-term contracts and high renewal rates. Mitratel's contracted revenue based on agreements with customers for all types of leases is IDR30.7 trillion, and the average remaining life of lease agreements is 6.3 years, as of 30 June 2021. Overall, Mitratel's fundamentals tick all the right boxes, in our view. </p></div>

Mitratel (1319Z IJ) is the largest telco tower owner and operator in Indonesia based on the number of telecommunication towers owned as of 30 June 2021, according to Analysys Mason. Mitratel is a subsidiary of Telekomunikasi Indonesia (TLKM IJ).Mitratel has launched an IPO to raise IDR20.0-24.9 trillion ($1.4-1.8 billion) at the IPO price range of IDR775-975 per share. Bookbuilding will close on 4 November and the shares are set to list on 22 November. Indonesia's tower industry is fast consolidating into an oligopoly with three large tower companies which are Mitratel, Sarana Menara Nusantara (TOWR IJ) (Protelindo) and Tower Bersama Infrastructure (TBIG IJ). In comparison to other major regions (US, Western Europe, China and India), the tower industry in Indonesia offers an attractive mix of high EBITDA margin, low capex, no colocation discount and no obligation to provide power in the contract.The tower industry also benefits from predictable revenue due to long-term contracts and high renewal rates. Mitratel's contracted revenue based on agreements with customers for all types of leases is IDR30.7 trillion, and the average remaining life of lease agreements is 6.3 years, as of 30 June 2021. Overall, Mitratel's fundamentals tick all the right boxes, in our view. 

Mitratel (Dayamitra Telekomunikasi) IPO Initiation: Control Tower

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/pt-dayamitra-telekomunikasi" target="_blank" data-smartkarma-citation="entities:34741:1" rel="noopener">PT Daytamitra (Mitratel) (1319Z IJ)</a> is looking to raise up to US$1.3bn in its Indonesia IPO.</p><p>Dayamitra Telekomunikasi (Mitratel) is a tower leasing unit of Telkom Indonesia. As of September 2021, the company managed just over 28,000 telecommunication towers across indonesia. It generated revenue through two main services, tower leasing and tower related business.</p><p>In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.</p><p>Our previous coverage of the IPO:</p><ul>
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<a href="https://www.smartkarma.com/insights/dayamitra-mitratel-pre-ipo-largest-telco-tower-provider-with-a-strong-backing" target="_blank" data-smartkarma-citation="insights:59337" rel="noopener">Dayamitra (Mitratel) Pre-IPO - Largest Telco Tower Provider with a Strong Backing</a> </li>
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<a href="https://www.smartkarma.com/insights/dayamitra-mitratel-pre-ipo-industry-and-competitive-landscape" target="_blank" data-smartkarma-citation="insights:59404" rel="noopener">Dayamitra (Mitratel) Pre-IPO - Industry and Competitive Landscape</a> </li>
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PT Daytamitra (Mitratel) (1319Z IJ) is looking to raise up to US$1.3bn in its Indonesia IPO.Dayamitra Telekomunikasi (Mitratel) is a tower leasing unit of Telkom Indonesia. As of September 2021, the company managed just over 28,000 telecommunication towers across indonesia. It generated revenue through two main services, tower leasing and tower related business.In this note, we will look at deal dynamics, assumptions, and share our thoughts on valuation.Our previous coverage of the IPO:

Dayamitra (Mitratel) Pre-IPO - Largest Telco Tower Provider with a Strong Backing 

Dayamitra (Mitratel) Pre-IPO - Industry and Competitive Landscape 


Dayamitra (Mitratel) IPO - Decent Upside at the Low-End

<div><p><a href="https://www.smartkarma.com/entities/pt-dayamitra-telekomunikasi" target="_blank" data-smartkarma-citation="entities:34741:1" rel="noopener">Dayamitra Telekomunikasi (1319Z IJ)</a> (Mitratel) is looking to raise about US$1bn in its upcoming Indonesia IPO.</p></div><div><p>Dayamitra Telekomunikasi (Mitratel) is a tower leasing unit of Telkom Indonesia. As of September 2021, the company managed just over 28,000 telecommunication towers across indonesia. It generated revenue through two main services, tower leasing and tower related business.</p></div><div><p>In this note, we look at the industry and competitive landscape and compare Mitratel to other Indonesia towercos.</p></div>

Dayamitra Telekomunikasi (1319Z IJ) (Mitratel) is looking to raise about US$1bn in its upcoming Indonesia IPO.Dayamitra Telekomunikasi (Mitratel) is a tower leasing unit of Telkom Indonesia. As of September 2021, the company managed just over 28,000 telecommunication towers across indonesia. It generated revenue through two main services, tower leasing and tower related business.In this note, we look at the industry and competitive landscape and compare Mitratel to other Indonesia towercos.

Dayamitra (Mitratel) Pre-IPO - Industry and Competitive Landscape

Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

Pan-Asia Equity Bottom-up

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<li>Cosco Capital (COSCO PM) has confirmed the spin-off listing of liquor distribution business later this month.</li>
<li>An ongoing buyback at Robinsons Retail Holdings (RRHI PM) has coincided with the passing of a new regulation to implement 12% VAT on online purchases, that may stem or reverse the retailer’s long-time decline.</li>
<li>A tactical situation has presented itself as First Gen (FGEN PM) becomes a crowded short ahead of index exclusion</li>
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Cosco Capital (COSCO PM) has confirmed the spin-off listing of liquor distribution business later this month.
An ongoing buyback at Robinsons Retail Holdings (RRHI PM) has coincided with the passing of a new regulation to implement 12% VAT on online purchases, that may stem or reverse the retailer’s long-time decline.
A tactical situation has presented itself as First Gen (FGEN PM) becomes a crowded short ahead of index exclusion


Wickhams Hill Research | Under-The-Radar Issue 9

Indonesia

PT Sarana Menara Nusantara Tbk, through a subsidiary, builds telecommunications towers. The Company constructs, operates, and rents the towers to mobile telecommunications services providers.

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Sarana Menara Nusantara (TOWR IJ)

Mitratel (Dayamitra Telekomunikasi) IPO: Valuation Insights

Mitratel has launched an IPO to raise $1.4-1.8 billion. Our valuation analysis suggests that the IPO price range is attractive. Overall, we would...

Arun George

Mitratel (Dayamitra Telekomunikasi) IPO Initiation: Control Tower

Mitratel has launched an IPO to raise $1.4-1.8 billion. Mitratel is well-placed to benefit from industry consolidation. Overall, Mitratel's...

Arun George

Dayamitra (Mitratel) IPO - Decent Upside at the Low-End

PT Daytamitra (Mitratel) (1319Z IJ) is looking to raise up to US$1.3bn in its Indonesia IPO. Dayamitra Telekomunikasi (Mitratel) is a tower leasing...

Sumeet Singh

Dayamitra (Mitratel) Pre-IPO - Industry and Competitive Landscape

Peer comparison shows that Mitratel lags peers in terms of tenancy ratio, average rev per tenant, and margins but having Telkomsel as parent with a...

Sumeet Singh

Wickhams Hill Research | Under-The-Radar Issue 9

Cosco Capital (COSCO PM) has confirmed the spin-off listing of liquor distribution business later this month. An ongoing buyback at Robinsons...

Lloyd Moffatt

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