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Mabua Harley-Davidson's principal to go public
Eyeing an IPO: âSoetikno Soedarjo, the owner of MRA Group--the holding company of PT Mabua Harley-Davidson--answers a question during an interview at the Mabua Harley-Davidson building in Pondok Pinang, South Jakarta on Feb
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Eyeing an IPO: âSoetikno Soedarjo, the owner of MRA Group--the holding company of PT Mabua Harley-Davidson--answers a question during an interview at the Mabua Harley-Davidson building in Pondok Pinang, South Jakarta on Feb. 10. MRA has announced plans to sell shares to the public in 2018 after restructuring its automotive dealership business. (thejakartapost.com/Anton Hermansyah) (thejakartapost.com/Anton Hermansyah)
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span class="inline inline-center">Eyeing an IPO: 'Soetikno Soedarjo, the owner of MRA Group--the holding company of PT Mabua Harley-Davidson--answers a question during an interview at the Mabua Harley-Davidson building in Pondok Pinang, South Jakarta on Feb. 10. MRA has announced plans to sell shares to the public in 2018 after restructuring its automotive dealership business. (thejakartapost.com/Anton Hermansyah)
Mugi Rekso Abadi (MRA) Group, the holding company of Mabua Harley-Davidson is planning to go public and list its shares on the stock market in 2018, after terminating its dealership business with US-based Harley-Davidson.
The initial public offering (IPO) would be conducted in the next two years after the company completed its efficiency programs, restructuring the automotive business arm, said MRA Group owner Soetikno Soedarjo.
"In its golden period, the automotive business accounted for 40 to 45 percent of the group's profits. The exotic automotive sector has been deteriorating as a result of regulatory difficulties. We need to stop the bleeding and save the money for a more profitable business," he said in Jakarta on Thursday.
After giving up its license as sole distributor of Harley-Davidson, Soetikno said, MRA would terminate cooperation with Italy-based Fiat in selling the exotic Abarth sports car.
The plan is expected to be complete in the first quarter of 2016, leaving Ferrari as the only client in MRA's automotive dealership arm.
The automotive business used to be a cash cow for MRA. After the government increased luxury taxes steeply in 2013 and ultimately squeezed margins in the automotive business, the media arms of MRA group took on the role of main profit generator.
"Now, the media business contributes 40 percent of our profits," he said.
Concentrating on the high-end consumer segment, MRA holds extensive franchises in media (FHM, Esquire, Hard Rock FM, Harper's Bazaar), resorts (Bvlgari hotel), retail (Bvlgari, Bang & Olufsen), automotive (Ferrari, Abarth), and restaurants (Hard Rock Café, Haagen-Dazs).
Founded by tycoons Soetikno, Adiguna Sutowo, Hutomo Mandala Putra (Tommy Soeharto), Yapto Suryosumarno, and Onky Soemarno, MRA built the Hard Rock Cafe in Sarinah, Thamrin in 1992. Adiguna and Soetikno hold 70 percent of shares in MRA. (ags)(+)
