16 September 2019 (closed)
USD/IDR (14,080) -20.00 -0.14%
EUR/IDR (15,582) +54.71 +0.35%
Jakarta Composite Index (6,219.44) -115.41 -1.82%
Newly listed Impack Pratama Industri, a leading Indonesia-based building materials and plastics manufacturer, expects its net profit to grow by 10 percent in 2015 from this year’s estimated IDR 280-290 billion (roughly USD $22.8 million). Net revenue is expected to grow 10-15 percent from an estimated IDR 1.60 trillion (USD $128 million) this year. The company conducted an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) earlier this week in a move to finance further business expansion.
Next year’s expected 10 percentage point net income growth implies that the company’s profit growth will slow sharply. In the first half of 2014 net income rose nearly 60 percent (y/y) to IDR 121 billion (USD $9.7 million), while revenue was up 27 percent to IDR 696 billion over the same period. Lindawati, Financial Director of Impack Pratama Industri, said that the company’s current expansion plans are reason behind why net income will slow markedly next year. The firm will develop new products and needs to purchase new machinery. Therefore it has set aside about IDR 24 billion (USD $1.9 million) for capital expenditure (capex) in 2015. The capex is funded by internal cash reserves as well as bank loans.
On its trading debut on Wednesday (17/12), shares of Impack Pratama Industri rose 50 percent, the maximum growth that was allowed, evidencing investors’ appetite for the company’s shares amid great global uncertainty and volatility on the international financial markets.
Local private companies Harimas Tunggal Perkasa and Tunggal Jaya Investama each control a 33.69 percent stake in Impack Pratama Industri after the IPO, while President Director of Pratama, Haryanto Tjiptodiharjo, controls a 1.59 percent stake.
Impack Pratama Industri offered 150.01 million shares, or 31.04 percent of the company’s enlarged share capital, to the public in its IPO raising about IDR 570.2 billion (USD $45.6 million) and with Ciptadana Securities serving as underwriter. President Director Haryanto Tciptodiharjo said that the company will use 36 percent of the proceeds for the purchase of a 6-hectare piece of land close to Jakarta (Silicon VII in Bekasi), 24 percent for the purchase of a 4-hectare plot of land in the same area (to be used by the company’s subsidiary Unipack Plasindo), and the remainder is reserved for working capital (which includes the purchase of raw materials).
The building materials and plastics manufacturer focuses on supplying the domestic market with about 30 percent of its sales originating from exports abroad.
Impack Pratama Industri, which uses IMPC as its ticker symbol on the IDX, is the 21st company to have conducted an IPO on the IDX in 2014. Director at IDX, Itu Warsito, stated that he expects three more IPOs this year: Bank Agris, Intan Baruprana Finance, and Golden Plantation.