PT Sido Muncul, a popular jamu maker, saw a positive market response on Wednesday during its trading debut on the Indonesia Stock Exchange (IDX) in Jakarta.

The Semarang, Central Java-based company proclaimed itself as the first herbal and pharmaceutical company to be listed on the country'€™s stock market.

Shares of Sido Muncul, traded under the code SIDO, opened at Rp 660 '€” rising about 13.79 percent from its initial public offering (IPO) price of Rp 580. The share recorded its peak at Rp 720 or nearly 25 percent above its initial price, and booked a day low at Rp 640.

The company'€™s first day of trading concluded with its shares valued at Rp 700, a 20.69 percent increase compared to its initial price.

Sido Muncul, known for its Tolak Angin and Kuku Bima energy drink, released 1.5 billion shares or 10 percent of its enlarged capital during the IPO held earlier this month and generated about Rp 870 billion from the offering. The shares were oversubscribed 11.4 times.

It appointed PT Kresna Graha Sekurindo and PT Mandiri Sekuritas as underwriters for the IPO.

Sido Muncul president director Irwan Hidayat said that about 56 percent of the IPO funds would be used as working capital while 42 percent would be allocated for the company'€™s 2014 capital expenditure (capex) to finance its expansion. The remaining 2 percent will go to the company'€™s information technology system development.

Irwan said that the company had planned to build a new facility in Semarang, expecting to boost its raw material production by four times and to double its production of Tolak Angin.

The production capacity of Tolak Angin, a popular cold remedy, stands at 70 million sachets per month as of now.

'€œWe use only 70 to 80 percent of our production capacity. We are hoping to optimize the capacity next year,'€ he said.

The funds will also be used to purchase new machinery, which Irwan said had been imported from Germany.

Irwan said that the company aimed to secure Rp 2.8 trillion in revenue next year, with a total net income of Rp 450 billion.

Irwan also expressed the company'€™s intention to raise the prices of its energy drink next year due to the weakening rupiah against dollar that had severely affected the products, of which most of its raw materials were imported.

Trust Security analyst Reza Priyambada said the positive market response was triggered by Sido Muncul'€™s outstanding company performance and the strengthening of the Indonesian Composite Index (IHSG).

'€œThe fact that Sido Muncul is the first jamu producer to be listed on the stock market is an additional positive sentiment to the market,'€ Reza said.

'€œWhen they offered their shares to the market, people got to know them and their competitive products '€” modernized traditional products '€” that are not less interesting than other pharmaceutical products,'€ he said.

Sido Muncul became the 31st company to be listed on the country'€™s stock market this year, allowing the IDX to surpass its target of seeing 30 companies enter the bourse this year.

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