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T Surya Pertiwi, the exclusive distributor of sanitary product TOTO, is set to launch an initial public offering in May to repay debts and finance its business expansion.

The company is expected to release 700 million new shares, 26 percent of the company’s issued and paid-up capital. From the corporate action, it is looking to obtain between Rp 812 billion (US$59.28 million) and Rp 1.06 trillion in fresh funds.

“The initial price range for the share would be between Rp 1,160 and Rp 1,520 per share,” Ciptadana Sekuritas president director Ferry Budiman Tanja, who acted as the firm’s underwriter, said on Monday.

The company will use half of the initial public offering (IPO) proceeds to pay debts to PT Bank Resona Perdania, PT Bank Mizuho Indonesia and PT Bank HSBC Indonesia. About one-fourth of the proceeds will be allocated as capital expenditure for its subsidiary, PT Surya Pertiwi Nusantara, with the remaining 25 percent to be used as working capital.

The book building period is scheduled from April 16 to 24. After obtaining the effective permission from the Financial Services Authority (OJK) on the targeted date of May 3, it plans to list its shares on the Indonesia Stock Exchange (IDX) by May 14 this year.

Surya Pertiwi director Irene Hamidjaja said the company had allocated Rp 400 billion in capital expenditure for the next three years to expand its production facilities.

“The capex will be used to add second and third production lines,” she told The Jakarta Post after the due diligence event in Jakarta.

At present, the firm, through its subsidiary Surya Pertiwi Nusantara (SPN), manages a factory in Surabaya, East Java, with a production capacity of 500,000 units per year.

As of December, it has 11 sole distributors across 14 big cities in Greater Jakarta and Surabaya, and more than 100 dealers in the same area. Last year, the company booked Rp 2.14 trillion in sales, an increase of 3.38 percent year-on-year (yoy).

Its net income was recorded at Rp 221.6 billion in 2017, a slight increase of 1.65 percent from the Rp 218 billion in the previous year.

Irene said a growth in sales of sanitary and fitting products would depend mostly on the country’s economic growth, especially with the increase in the buying power of consumers.

In line with surging buying power, the company said it was confident that more people would buy modern sanitary products.

“With a growing population of middle-income people, we hope that they will shift their preference from buying squat toilets to sitting toilets, just like in Thailand,” she said.

Based on data from global market intelligence firm Euromonitor International Limited, sales of sanitary and fitting products are expected to grow between 2016 and 2019.