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Jewelry maker eyes Rp 450 billion in fresh funds from IPO
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PT Hartadinata Abadi finance director Deny Ong (from left to right), production and operational director Cuncun Muliawan, president director Sandra Sunanto, and president commissioner Ferriyady Hartadinata converse after a press conference on Wednesday. The jewelry company aims to raise Rp 450 billion (US$33.7 million) from its planned initial public offering next month. (JP/Winny Tang)
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span class="im">Jewelry manufacturer PT Hartadinata Abadi aims at cashing in Rp 450 billion (US$33.7 million) in fresh funds from its initial public offering (IPO) to support expansions.
The IPO, scheduled for next month, will put Hartadinata as the country's first private jewelry maker enlisted with the Indonesia Stocks Exchange (IDX). The company, through the IPO, plans to sell 1.5 billion new shares - representing 30 percent of its enlarged capital – at between Rp 280 and Rp 356 apiece.
“The prospect of the jewelry industry is huge in Indonesia […] We are sure that after Hartadinata Abadi conducts an IPO, the firm can expand faster,” president director Sandra Sunanto told a press briefing on Wednesday.
(Read also: Jewelry maker targets eastern Indonesia)
Hartadinata will use 50 percent of the proceeds from the IPO as capital expenditure with following detail: 42 percent to purchase raw materials, 6 percent to buy tooling chain machines and 2 percent for the establishment of an e-commerce platform. Meanwhile, the remaining 50 percent will be used to repay its outstanding loans.
The company has appointed PT Mandiri Sekuritas, PT MNC Sekuritas and RHB Sekuritas as underwriters.
The book building period started on May 10 and will finish on May 24. The offering period, moreover, will run from June 12 to 14 this year. The shares will be traded for the first time on the Indonesia Stock Exchange on June 20. (hwa)
