Batavia Prosperindo Internasional’s IPO on the Indonesia Stock Exchange
Batavia Prosperindo Internasional, an Indonesian business and management consultancy services firm, set its share price in the range of IDR 450 to IDR 500 (roughly USD $0.04) for its initial public offering (IPO) on the Indonesia Stock Exchange (this price range is in line with the company’s price to earnings ratio at between 8.2 to 9.2 times). Through this corporate action the company will release 29.18 percent of its enlarged capital. General Director Rudi Setiadi said that the company intends to offer 150 million shares to the public.
As such, the company expects to raise IDR 33.7 to 37.5 billion from the IPO. The 150 million shares that are released involve 75 million new shares and 75 million divested shares of Malacca Trust Limited. Underwriter for the IPO is Panin Sekuritas. Listing on the Indonesia Stock Exchange is planned for 2 July 2014.
The company will use 50 percent of the IPO proceeds to finance the business activities of its subsidiary Batavia Prosperindo Securities, one of Indonesia’s leading securities firms. The remaining 50 percent will be used for business expansion of Batavia Prosperindo Asset Management, an investment management firm. This firm plans to offer new products (mutual funds).
This year, net profit of Batavia Prosperindo Internasional is expected to fall to IDR 28 billion (USD $2.4 million), from IDR 32.7 billion (USD $2.8 million) in 2013. Meanwhile, the company’s revenue is expected to grow from last year’s IDR 153.3 billion (USD $12.9 million) to IDR 157 billion (USD $13.3 million) in 2014.