Indonesia’s Telkom sells $234 million of treasury shares

The deal is upsized by more than 50% despite being offered at a zero percent discount. A tight allocation supports the stock in the aftermarket.
Telkom is 53.9% owned by the Indonesian government
Telkom is 53.9% owned by the Indonesian government

Telekomunikasi Indonesia Telkom, an Indonesian telecom operator that is 53.9% owned by the government, last night raised Rp2.409 trillion $234 million from the sale of treasury shares the third such deal in Indonesia and the largest so far.

As per local regulations, companies cannot sell treasury shares at a discount to their current market price and that, together with the recent weakening in the rupiah, meant it was not a trade that appealed to everyone. But Telkom’s reputation as a well-managed company and the fact that it is a stable and somewhat defensive business did attract sufficient demand both from domestic and international investors.

The bookrunners...

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