he newly listed PT Duta Intidaya, the sole operator of Watsons stores in Indonesia, has concluded its debut trading session with an 8 percent increase in its shares price to Rp 195 per unit (10 US cents).
The company offered 478 million shares at Rp 180 per unit, taking Rp 86 billion. Sixty-five percent of the proceeds will be used to expand outlets while the remaining 35 percent will go toward paying off a Rp 29.14 billion debt to London-based lender HSBC.
“We have allocated capital expenditure to build 20 new Watsons stores, with a budget of around Rp 1 billion for each store,” Dita Intidaya independent director Sukarnen said at the Indonesian Stock Exchange (IDX) building in Jakarta on Tuesday.
Currently, the firm operates 47 Watson stores through a sole and exclusive licensing arrangement with the Hong Kong-based A.S. Watson Group in Jakarta, Banten, West Java and Central Java.
More stores will be built, particularly in Java and Bali islands, Sukarnen said. The firm aims to see a 20 percent growth in revenue this year.
Duta Intidaya president director Lilis Mulyawati said the company aimed to expand its business through e-commerce as well, targeting for 50 percent of all sales to come from electronic transactions in 2020. (vps/ags)
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