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AKARTA: Heavy equipment distributor Kobexindo Tractors is seeking up to Rp 500 billion (US$53.3 million) from an initial public offering of 858 million shares, or about 30 percent of its enlarged shares, scheduled between June 20 and 22.

“We will use 41 percent of the fresh funds to strengthen our working capital, buy new excavators, rigid dump trucks, articulated dump trucks, forklifts and spare parts,” Kobexindo financial director Martio said on Thursday.

Martio said that 34 percent of the IPO proceeds would finance the opening of five new marketing branches in Kalimantan, South Sumatra, Central Java, East Java and the eastern part of Indonesia and expand existing marketing networks in Surabaya, East Java, while the remaining 25 percent would be used to repay debts.

With Mandiri Securities, Lautandhana and Valbury acting as the underwriters of the IPO, Kobexindo will offer the shares in the range of Rp 380 to Rp 520 a piece.

According to Martio, the company sold 975 units of heavy equipment last year, generating Rp 1.3 trillion in net sales, up from Rp 741 billion in 2010 and Rp 470 billion in 2009.

Kobexindo president director Humas Saputro said that the company was eyeing a 54 percent increase in net sales to Rp 2 trillion this year and a 104 percent growth in net profits to Rp 155 billion from Rp 79.9 billion last year.