Oil and gas tanker company Soechi Lines is aiming to raise Rp 2 trillion (US$164 million) from floating its shares to the public to support the companyâs expansion, hoping to tap into a growing marine industry on the back of the cabotage rule and commitment from the new government to advance the role of Indonesiaâs waters
il and gas tanker company Soechi Lines is aiming to raise Rp 2 trillion (US$164 million) from floating its shares to the public to support the company's expansion, hoping to tap into a growing marine industry on the back of the cabotage rule and commitment from the new government to advance the role of Indonesia's waters.
Soechi Lines revealed in a recent press briefing that the company planned to release 2.57 billion of new shares in an initial public offering (IPO) next month. The shares to be floated are equal to 30 percent of the company's enlarged capital. The firm has scheduled the offer period for Nov. 24 to 26, and the allotment of shares for Nov. 28 before a scheduled listing on the Indonesia Stock Exchange (IDX) on Dec. 2.
Soechi Lines president director Go Darmadi said that the shares would be priced at around Rp 600 to Rp 800 apiece, which means the company could pocket Rp 1.54 trillion to Rp 2.06 trillion of fresh capital after the IPO.
Go said that the company planned to use half of the IPO funds or next year's capital expenditure (capex) to buy new vessels for its fleet. The company has allocated $92 million to buy five to seven new vessels next year.
He added that 25 percent of proceeds from the IPO would be used to repay some of the company's debts while the remainder would be used for working capital. As of the first half of the year, the company generated $54.8 million in revenue, up by 18.35 percent year-on-year.
Soechi Lines' fleet comprises 33 vessels.
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