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Chitose International to increase exports with IPO funds
Going public: PT Chitose International Managing Director Dedie Suherlan (second left), with the companyâs board of directors (from left) Kazuhiko Aminaka, Timatius Jusuf Paulus, Fadjar Swatyas and Aan, at the companyâs public expose event in Jakarta on Thursday
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Going public: PT Chitose International Managing Director Dedie Suherlan (second left), with the companyâs board of directors (from left) Kazuhiko Aminaka, Timatius Jusuf Paulus, Fadjar Swatyas and Aan, at the companyâs public expose event in Jakarta on Thursday. Chitose International, the producer and distributor of the Chitose brand of furniture, is planning to sell 300 million shares, or 30 percent of the companyâs enlarged capital, to the public. (Antara/Audy Alwi) (second left), with the companyâs board of directors (from left) Kazuhiko Aminaka, Timatius Jusuf Paulus, Fadjar Swatyas and Aan, at the companyâs public expose event in Jakarta on Thursday. Chitose International, the producer and distributor of the Chitose brand of furniture, is planning to sell 300 million shares, or 30 percent of the companyâs enlarged capital, to the public. (Antara/Audy Alwi)
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span class="inline inline-none">Going public: PT Chitose International Managing Director Dedie Suherlan (second left), with the company's board of directors (from left) Kazuhiko Aminaka, Timatius Jusuf Paulus, Fadjar Swatyas and Aan, at the company's public expose event in Jakarta on Thursday. Chitose International, the producer and distributor of the Chitose brand of furniture, is planning to sell 300 million shares, or 30 percent of the company's enlarged capital, to the public. (Antara/Audy Alwi)
Furniture producer PT Chitose International is aiming to raise up to Rp 105 billion (US$8.85 million) by offering 30 percent of its enlarged capital to the public on June 20-23.
The company plans to sell 300 million shares for between Rp 320 and Rp 350 each in the initial public offering (IPO), as it seeks to expand its business and increase its exports.
Chitose has chosen PT Danareksa Sekuritas and PT Sinarmas Sekuritas as the underwriters for its IPO before the listing, which is scheduled for June 27.
Chitose plans to used the funds raised from the IPO to purchase new machinery and raw materials, as well as to fund the construction of a new production plant in Cimahi, West Java, in order to strengthen its export business.
Chitose independent director Aan explained that 55 percent of the company's IPO earnings would go to funding the land acquisition and construction for the factory, which will mostly produce goods for the Japanese market.
The investment for the factory will range between Rp 52.8 billion and Rp 57.75 billion.
'Ninety percent of the goods produced at this new factory will be doors and 10 percent will be wooden tabletops,' Aan said in a public presentation in Jakarta on Thursday.
'All the doors produced will be exported to Japan, while the tabletops will be for the domestic market,' he added.
He said the new factory would have a production capacity of 30,000 to 40,000 items per year.
Furthermore, Chitose's finance and administration director, Fadjar Swatyas, emphasized that the company's goal this year was to increase its export percentage from its current 3 percent to 10 percent by year-end.
About 97 percent of the goods produced at Chitose's current factory, which is also located in Cimahi, is destined for the local market, while the remaining 3 percent goes overseas.
Chitose's largest export markets are Japan, Taiwan, Singapore, New Zealand, Nigeria and India.
In Indonesia, they hold a 51 percent share in the office furniture market, while controlling a 38 percent share in the foldable chair market.
Also, with the funds from the IPO, Chitose plans to open a new flagship retail store at the beginning of 2015, possibly in Alam Sutera, West Java, or in East Java.
The company aims to allocate 30 percent of its IPO earnings on opening the store.
Chitose earned Rp 124.2 billion in net profits in 2013, up by 436 percent compared to the previous year, while it gained Rp 288.1 billion in net revenue, an increase of 13.7 percent compared to 2012.
Fadjar said the company was aiming for 15 percent growth in net profits and 11 percent growth in revenue by the end of 2014.
The company produces, among other things, office chairs, foldable chairs, doors and tabletops, mostly for use in hotels, offices, schools and hospitals.
In 2013, the company produced 1.3 million pieces of furniture. (dyl)
