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T Supra Boga Lestari, the operator of Ranch 99 Market retail outlets, plans to sell a portion of its shares to the public in the next few months to raise funds to finance the company’s expansion plans.

Supra Boga’s president director Nugroho Setiadharman said in Jakarta on Friday that the company planned to offer 20 to 30 percent of its enlarged shares to the public during the initial public offering (IPO), which would be launched in May.

“We hope to hold the IPO in May, if we get a positive response from the bourse’s authorities for the IPO. We are still waiting for their approval, hopefully in one or two days,” Nugroho said. He hoped the company could raise between Rp 200 billion and Rp 300 billion from the IPO.

Supra Boga has appointed Kresna Graha Securindo as underwriters for its IPO.

Nugroho said that his company would use funds obtained from the IPO to support its expansion and strengthen its capital structure. He also said that his company expected to open more stores, particularly outside Java.

“We see that many areas experience increasing income per capita of their residents. There are many mining companies, which are successful and contribute to the development of their respective areas,” Nugroho said.

According to him, the company currently has 14 stores, mostly in Jakarta, and is planning to open five more stores this year. “We aim to have up to 30 stores by 2014,” Nugroho said.

Nugroho declined to reveal how much the company allocated for the new stores this year, however, he hinted that a store would need about Rp 10 billion in investment.

“However, investments will depend on areas occupied by the stores,” he said.

Supra Boga founded Ranch 99 Market in 1997 as a franchisee of Ranch Market USA, the company’s official website discloses. Ranch Market Indonesia has had its own flag since 1998 after riots driving the American firm to leave the country.

Specialized in imported products, Supra Boga designates its Ranch Market for Indonesia’s upper and upper middle-class. Most of the company’s stores are located in prime areas such as Grand Indonesia Shopping Town.

Supra Boga’s shares to be listed on the Indonesia Stock Exchange (IDX) will give another alternative for investors. Several retailers have entered the bourse, however, none specialized in high class and modern daily need providers.

Several retailers are listed on the capital market, such as Alfamart mini market operator PT Sumber Alfaria Tirjaya Tbk, which is focusing on lower middle class. There is also retail group PT Hero Supermarket Tbk, which also focuses on middle class people. The company currently owns Hero supermarket, Giant hypermarket, guardian drug store and Starmart convenience stores.

Nugroho said that his company would be able to attract investors despite tight competition in the market.

—JP/ Raras Cahyafitri