NET TV plans to go public, seeking to raise Rp150 billion

Net Visi Media or generally known as NET TV recently announced its plan to hold an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) on 25 January. The company holds the book building process from 27 December to 3 January. 

Book building is the process where companies attempt to determine the price at which an IPO will be offered.

According to the summary prospectus published on 27 December, NET TV plans to offer a maximum of 765,306,100 new shares (3% of its enlarged share pool) with a par value of Rp100 per share. For the IPO, the company aims to sell the shares at around Rp190-Rp196 apiece, aiming to raise up to Rp150 billion.

According to Tren Asia, NET TV will use 18.5% of the fresh fund obtained from the IPO to develop its artist management programme, while 53% will be used as capital for its subsidiary Net Mediatama Televisi (NMTV) dealing with programme development  as well as to pay parts of bank loans. Lastly, the remaining 28.5% will be allocated for another subsidiary Net Media Digital for both programme development and operating cost. 

According to Tech in Asia, NET TV in November 2017 made an agreement with Tokopedia to transfer convertible bonds worth Rp405 billion to the e-commerce giant. The conversion of the said bonds to equity will be executed at the same time as Net Visi Media’s IPO.