JAKARTA: Car rental company PT Adi Sarana Armada raised Rp 530.4 billion (US$55.05 million) from sales of its shares through an initial public offering (IPO). The shares were listed on the Indonesia Stock Exchange (IDX) on Monday.

The company sold 40 percent, or 1.36 billion, of its enlarged shares to the public at Rp 390 apiece. The price rose 17.9 percent to Rp 460 per share during Adi Sarana’s market debut on Monday morning.

It became the 21st firm listed on the IDX this year. PT Bahana Securities and PT Buana Capital acted as underwriters for the IPO.

Adi Sarana plans to use 58 percent of the IPO funds to purchase new vehicles, 32 percent to pay off its loans to several banks and the remaining 10 percent to finance its infrastructure development.

The company will purchase 3,700 new vehicles, including multipurpose vehicles, sedans, four-wheel drive vehicles and trucks.

More than 67 percent of the company’s business is in the rental segment, followed by used cars (15 percent), logistics (11 percent) and driver services (7 percent).

As of September, it operated more than 10,250 vehicles and employed 2,600 drivers who served corporations in various sectors, such as banking, retail and plantations.

During the first nine months of this year, the company reaped Rp 700 billion in revenues, 12 percent higher than the same period in 2011. Its net profits surged 17 percent to Rp 15 billion.

By September, Adi Sarana’s assets amounted to Rp 1.6 trillion. Its liabilities stood at Rp 1.2 trillion and its equities reached Rp 400 billion.

Adi Sarana is traded under the stock symbol “ASSA” on the IDX.