In the already busy initial public offering (IPO) month of May, two more companies were added to the Indonesia Stock Exchange on Wednesday (23/05): (1) Sarimelati Kencana, the operator of the Pizza Hut chain in Indonesia, and (2) Guna Timur Raya, an integrated logistics solutions provider. This brings the total number of IPOs in Indonesia so far in 2018 to 16. In May alone a total of seven companies made their trading debut on the Indonesia Stock Exchange. Thus, Indonesia is on track to set a new record in terms of IPO realizations this year.
Sarimelati Kencana, the operator of Pizza Hut Restaurant and Pizza Hut Delivery, offered 604.4 million shares, equivalent to 20 percent of the company's total paid-up capital, to the public through the corporate move. Its IPO price was set at IDR 1,100 per share. Hence, it raised IDR 664.81 billion (approx. USD $47.5 million) through the IPO. CGS-CIMB Sekuritas Indonesia, CLSA Sekuritas Indonesia, and Mandiri Sekuritas acted as underwriters.
Around 65 percent of the IPO proceeds will be used to boost capital expenditures. This involves the expansion of its restaurant network as well as the renovation of existing restaurants. Over the next two years Sarimelati Kencana plans to open 124 new restaurants. In 2017 the company had already opened 51 branches. Thus, investment in the expansion of its restaurant network is the company's key strategy to seek rising sales and profit.
Joe Sasanto, Director of Sarimelati Kencana, said 75 percent of these new restaurants will involve new Pizza Hut Delivery branches, while the remaining 25 percent involve Pizza Hut Restaurants. He added that a Pizza Hut Delivery branch - which is basically only used by people to order take away pizzas - is much easier to open because it is smaller than a Pizza Hut Restaurant. Thus, it also requires less capital to open one.
Location-wise, most of the new branches (75 percent) will be established in cities on the island of Java. The remaining 25 percent of stores will be opened in cities outside Java.
The remaining 35 percent of IPO proceeds will be used for the payment of partial loan facilities from banks or other financial institutions.
Guna Timur Raya
Meanwhile, logistics services provider Guna Timur Raya offered 150 million new shares, equivalent to 34.48 percent of the company's total paid-up capital, to the public through the IPO on the Indonesia Stock Exchange. The IPO price was set at IDR 230 per share, thus it raised a total of IDR 34.5 billion (approx. USD $2.5 million) through the corporate move. UOB Kay Hian Sekuritas acted as underwriter.
The company is set to use 94 percent of the IPO proceeds for the purchase of 70 new trucks (specifically for the down payment of these trucks), while the remaining 6 percent goes to the company's working capital budget (covering matters such as salary and benefits payments, and office expenses). Currently, Guna Timur Raya's fleet already consists of more than 100 trucks.
At the company's trading debut Budi Gunawan, President Director of Guna Timur Raya, said "we realize that this [IPO] is not the end point but only the starting point of our journey to become a transportation services company that is recognized nationally, regionally, and internationally."
So far in 2018 fourteen companies have been added to the Indonesia Stock Exchange: telecommunication construction services company LCK Global Kedaton, coal miner Borneo Olah Sarana Sukses, helicopter transportation services company Jaya Trishindo, solar panel manufacturer Sky Energy Indonesia, trade, transportation and logistics services provider Indah Prakasa Sentosa, telecommunication support services company Gihon Telekomunikasi Indonesia, chemical manufacturing company Tridomain Performance Materials, property developer Dafam Property Indonesia, financial institutions Bank Tabungan Pensiunan Nasional Syariah and Bank BRISyariah, investment company Charnic Capital, sanitary ware company Surya Pertiwi, hospital operators Royal Prima and Medikaloka Hermina, pizza hut operator Sarimelati Kencana, and transportation services provider Guna Timur Raya.
Last Update: 30 Nov 2018
IPOs on the Indonesia Stock Exchange up to 23 May 2018
|Company||P: 30 Nov 2018||P: 29 Nov 2018||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|LCK Global KedatonLCKM||300||312||-3.85%||N/A||0.00%||-3.85%|
|Borneo Olah Sarana SuksesBOSS||2,400||2,270||5.73%||N/A||0.00%||300.00%|
|Sky Energy IndonesiaJSKY||880||895||-1.68%||N/A||0.00%||46.67%|
|Indah Prakasa Sentosa Tbk.INPS||2,040||2,040||0.00%||N/A||0.00%||392.75%|
|Gihon Telekomunikasi Indonesia Tbk.GHON||1,280||1,170||9.40%||N/A||0.00%||-27.07%|
|Tridomain Performance Materials Tbk.TDPM||300||304||-1.32%||N/A||0.00%||-12.28%|
|Dafam Property Indonesia Tbk.DFAM||800||810||-1.23%||N/A||0.00%||310.26%|
|Charnic Capital Tbk.NICK||135||141||-4.26%||N/A||0.00%||-60.29%|
|Bank Tabungan Pensiunan Nasional Syariah Tbk.BTPS||1,715||1,725||-0.58%||N/A||0.00%||17.47%|
|Bank BRIsyariah Tbk.BRIS||540||545||-0.92%||N/A||0.00%||-0.92%|
|Surya Pertiwi Tbk.SPTO||980||985||-0.51%||N/A||0.00%||-17.65%|
|Royal Prima Tbk.PRIM||660||670||-1.49%||N/A||0.00%||-12.00%|
|Medikaloka Hermina Tbk.HEAL||3,050||3,050||0.00%||N/A||0.00%||-3.79%|
|Sarimelati Kencana Tbk.PZZA||900||900||0.00%||N/A||0.00%||-18.55%|
|Guna Timur Raya Tbk.TRUK||132||141||-6.38%||N/A||0.00%||-61.63%|
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available