PT Dwi Aneka Jaya Kemasindo Tbk, an Indonesian-based company specialized in corrugated carton and offset printing, offers one billion new shares (40 percent of its enlarged capital) - at a price range of between IDR 425 and IDR 475 per share - in its initial public offering (IPO) on the Indonesia Stock Exchange in the weeks ahead. The printing and packaging company aims to raise a total of between IDR 425 billion (USD $37.3 million) and IDR 475 billion (USD $41.5 million) through this corporate action.
Underwriters of Dwi Aneka Jaya Kemasindo's IPO are Valbury Securities and Sucorinvest Central Gani.
Originally, the company intended to conduct its IPO in late 2013. However, it was postponed as the company considered it bad timing amid heightened global uncertainty amid the looming end of the Federal Reserve's quantitative easing program, resulting in high volatility of capital flows in emerging markets.
Corporate Secretary at Dwi Aneka Jaya Kemasindo Henri Victor Parengkuan stated that the book building process (which helps to determine the value of the share) is undertaken between 14 and 23 April 2014. Listing on the Indonesia Stock Exchange is scheduled for 8 May 2014.
Saratoga Investama Sedaya, a Jakarta-based investment firm controlled by Edwin Soeryadjaya and Sandiaga Uno, have made a bid to purchase a portion of the shares in the IPO. A memorandum of understanding has been signed, but the portion will be determined based on the book building result.
Proceeds from the IPO will be used to finance capital expenditure and working capital. About 40 percent will be allocated to purchase various machineries to enhance the company's production capacity. Offset printing capacity is targeted to increase to 76,000 metric tons per year, from 36,000 tons presently. The company's corrugated carton production is aimed to double to 48,000 tons in 2014 from 24,000 tons.
Dwi Aneka Jaya Kemasindo was established in 1996 and is one of the leading players in the offset printing industry and corrugated packaging in Indonesia.