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Cyrus producer's stock jumps 70% on IPO
(illustration: kontan
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(illustration: kontan.co.id) (illustration: kontan.co.id)
(illustration: kontan.co.id)
Prepaid mobile credit wholesaler PT Mitra Komunikasi Nusantara Tbk, which is also CYRUS smartphone and tablet producer, made a strong debut on its initial listing at Indonesia Stock Exchange (IDX) on Monday, during which its shares surged by up to 70 percent higher than its initial offering price.
Listed under the code of MKNT, Mitra's shares traded at Rp 250 (less than 2 US cents) at opening, or 25 percent higher than its IPO price of Rp 200. The price then closed at Rp 340 at end of the first trading session, surging 70 percent above its initial public offering (IPO) price.
As the 14th company to list its shares on the bourse this year, Mitra issued 200 million shares or 20 percent of its enlarged capital, targeting Rp 40 million in proceeds.
As stated in its prospectus, 70 percent of the proceeds will be used as the capital expenditure to expand business and distribution throughout Indonesia, while the remaining 30 percent will be used to pay off debt to private banks.
Mitra's managing director Jefri Junaedi said the expansion of Mitra's business would be directed at the domestic market.
Mitra planned to expand the number of retail outlets in Indonesia in the first quarter of 2016, but also planned to build a new manufacturing factory, most probably in Jakarta around 2016.
'The factory will be used to accommodate CYRUS' whole production activities, including components assembling and furnishing activities,' Jefri told journalists after the launch.
Responding the government's regulation on the minimum requirement of local industrial contents (TKDN), Jefri said the company would maximize its efforts to reach the minimum TKDN of 30 percent.
'Our company will strive to reach 30 percent of TKDN at least by the second semester of 2016. We also hope for a better performance of our whole business next year,' he stated. (ags/ebf)
