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Arkadia goes public, aims to improve services
Digital media company PT Arkadia Digital Media went public and officially listed its shares on the Indonesia Stock Exchange (IDX) on Tuesday, becoming the first company in its industry to do so
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igital media company PT Arkadia Digital Media went public and officially listed its shares on the Indonesia Stock Exchange (IDX) on Tuesday, becoming the first company in its industry to do so.
Through the initial public offering (IPO), Arkadia released 150 million new shares, equal to 46.15 percent of the issued and paid-up capital. Through this corporate action, it expects to receive around Rp 30 billion (US$2
million).
Arkadia CEO William Martaputra said the company would use the funds from the IPO to improve its infrastructure and hardware, as well as develop platforms and software. The fresh funds will also be used for the company’s working capital.
William said he was optimistic that the value of the company would increase significantly going forward.
Arkadia’s digital media platforms include news portal Suara.com, its major service, which was introduced four years ago.
More recently, the company has also introduced other platforms including celebrity and entertainment news Matamata.com, soccer and sports news portal Bolatimes.com, tech and gadget website Hitekno.com, automotive and motorsports-focused site Mobimoto.com, and traveling site Guideku.com.
Arkadia also operates a production house and offers event-management services, with several clients including state-owned lender Bank BRI, airline-ticketing and hotel-booking service Traveloka, as well as several government agencies.
William emphasized that the corporate action was a big and strategic step for Arkadia’s business development.
“Unlimited creativity and the many development agendas that will be carried out by the company make us believe the future of the digital media business is very promising,” he said.
Separately, Panin Sekuritas analyst William Hartanto said the IPO was a positive step for Arkadia.
“IPO funds for working capital are very good, the potential for Arkadia itself looks bright, as the announcement of the IPO was in the news before the listing,” William told The Jakarta Post via text message on Tuesday.
He went on to say that Arkadia’s shares would rise in the short-term, as was the norm during a company’s early days on the stock market.
“And for the long term, at least one year ahead, it will also be good, supported by the year of politics and a higher frequency of media users. One of the best-known Arkadia media platform in the community is Suara.com.” he added, referring to the legislative and presidential elections that will take place in 2019.
However, he said, the impact on other digital media companies going public would not be significant.
Arkadia’s shares closed at Rp 340, on Tuesday. (acr)
