Telkom Indonesia unit Mitratel targets record $1.68 bln IPO

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Workers of the Indonesia's leading telecommunication company PT TELKOM monitor the screen at the monitoring unit in Jakarta April 15, 2009. TELKOM and Orange, one of the world's leading telecommunications operators, officially signed an agreement on Wednesday to provide global link for their customers in Indonesia. REUTERS/Crack Palinggi (INDONESIA BUSINESS)

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JAKARTA, Nov 10 (Reuters) - PT Dayamitra Telekomunikasi (Mitratel), a unit of Telkom Indonesia (TLKM.JK), plans to raise up to 24 trillion rupiah ($1.68 billion) in an initial public offering (IPO), which would be the country's biggest ever.

Indonesia's largest telecoms tower operator aims to sell a stake of 29.85% in the share sale at a price range of 775 rupiah to 975 rupiah, Telkom CEO Ririek Ardiansyah told a parliament committee on Wednesday.

If priced at the top end of the range, Mitratel's IPO would beat the record IPO of e-commerce Bukalapak, which raised $1.5 billion in July. read more

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Mitratel is aiming to launch the offering on Nov. 16-18, with a Nov. 22 listing at the Indonesia Stock Exchange, Ririek added.

"The allocation for the fund raised is mainly for capital expenditure, either for building new towers or acquiring towers from other companies," he said, adding that Mitratel could also buy towers from other Telkom's cellular operator Telkomsel.

Mitratel currently has over 28,000 towers or about 31% of the market.

HSBC (HSBA.L), J.P. Morgan, Morgan Stanley (MS.N), BRI Danareksa Sekuritas and Mandiri Sekuritas were hired to help manage the IPO.

($1 = 14,325 rupiah)

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Reporting by Fransiska Nangoy; Editing by Martin Petty

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