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EV bike maker Alva mulls IPO amid limited production for slow demand
Though still in its early stage, homegrown EV bike maker is looking ahead at possible expansion and IPO plans as it waits for measurable improvements in demand from the government's recently revised purchase subsidy program.
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Workers assemble electric motorbikes in the Alva Manufacturing Facility at Delta Silicon Industrial Park in Cikarang, West Java, in this undated handout photograph provided in September 2023. (Alva Auto/-)
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lectric vehicle (EV) motorbike start-up Alva is considering issuing an initial public offering (IPO) and is planning to expand its sales network amid the homegrown firm’s low capacity utilization in the production of its proprietary EV two-wheeler brand.
Alva operates as part of PT Ilectra Motor Group (IMG), a joint venture formed in 2022 between Alpha JWC Ventures, Horizon Ventures and energy company PT Indika Energy.
“For us as a corporation, heading in that direction [of an IPO] is very much possible and something we have to consider,” Purbaja Pantja, CEO at IMG and chief investment officer at PT Indika Energy, said on Wednesday during a media visit to the Alva Manufacturing Facility in Cikarang, West Java.
He acknowledged that Alva was still an early stage business and had not reached the point to go public just yet, citing regulatory requirements including that of the Financial Services Authority (OJK), which required for a company to have at least three years of audited financial reports before pursuing an IPO.
The OJK requirement is also listed in the Indonesia Stock Exchange's IPO Guidebook as a prerequisite for a company to list its shares on the bourse’s main board.
Read also: Indonesia tops IPO leaderboard in Southeast Asia
Another requirement is that a company must have operated more than 36 months in the same core business and reached certain thresholds in terms of pretax profits, revenue, market capitalization assets and/or cash flow.
