Indonesia-based chemical manufacturing company Tridomain Performance Materials made its trading debut on the Indonesia Stock Exchange on Monday (09/04), hence becoming the seventh company to have completed its initial public offering (IPO) in Indonesia in 2018. The company offered 1.8 billion new shares to the public, equivalent to 17.19 percent of the company's total share equity. At the end of the trading day its shares had surged 50.0 percent.
Through the IPO Tridomain Performance Materials obtained IDR 411.0 billion (approx. USD $30 million) in fresh funds. Hendro Waskito, Chief Operating Officer Tridomain Performance Materials, said the majority of funds that were generated through the IPO will be used to invest in business expansion of the company's four subsidiaries. Boosting the production capacity of the factories is expected to cost up to USD $15 million. The remainder of IPO proceeds will be added to the working capital budget. After all "when production capacity rises, then the company will need to spend more on raw materials," Waskito added.
The four subsidiaries are Eternal Buana Chemical Industries (located in Tangerang, Banten), Eterindo Nusa Graha (located in Gresik, East Java), Tridomain Chemicals (in Merak, Banten), and Petronika (in Gresik, East Java). Products of Tridomain Performance Materials include water-based resins, solvent-based coating resins, plasticizers, acrylamides, electric/telecommunication cables, bags and furniture.
The company has formulated several strategies for business expansion, including a focus on expanding production as well as production capacity, launching (and marketing) new products, and strengthening the company's export performance.
In the January-September 2017 period Tridomain Performance Materials recorded USD $117.25 million in sales, up 36.8 percent from the same period one year earlier. Meanwhile, its net profit surged 167.5 percent to USD $5.2 million over the same period.
Prior to the listing of Tridomain Performance Materials six other companies were added to the Indonesia Stock Exchange in 2018: 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, and telecommunication support services company Gihon Telekomunikasi Indonesia.
Last Update: 30 Nov 2018
IPOs on the Indonesia Stock Exchange up to 09 April 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%|
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