Cipaganti Citra Graha, an Indonesian transportation company, will offer 40 percent of its stock equity to the public through an initial public offering (IPO). The company releases 2 billion shares with a nominal value of IDR 100 per share. These 2 billion shares consist of 1.75 billion new shares as well as 250 million shares that are owned by its holding company Cipaganti Global Corporindo. The company, which will be listed on 9 July 2013, will reserve 40 million shares for the employee stock allocation (ESA).
Aim of the IPO is to receive new funds to expand its business activities. More than 93 percent of the proceeds will be used to purchase new shuttle minibuses, tour buses, heavy equipment as well as land. The remainder is reserved for working capital. Lead undewriters for the IPO are Mandiri Sekuritas and Kim Eng Securities.
Cipaganti Citra Graha, which businesses cover transportation, heavy equipment and property, posted net profit of IDR 76.29 billion (USD $7.8 million) in 2012, a 78 percent increase from the previous year. Its revenue in 2012 was IDR 639.37 billion.