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Pool Advista Finance to hold IPO; eyes Rp 32b profit next year
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Logo of multifinance firm Pool Advista Finance (Courtesy of/Pool Advista Finance)
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ultifinance firm Pool Advista Finance announced on Wednesday it would hold an initial public offering (IPO) on Nov. 18 as it seeks fresh funds to acquire new assets and improve its information systems and technology in an attempt to boost its net income.
The company said it would release 800 million new shares to the public, or equal to 23.92 percent from the total paid up and issued capital, to collect Rp 100 billion (US$6.58 million) to Rp 120 billion in fresh funds.
The shares will be offered at between Rp 125 and Rp 150 apiece.
Raden Ari Priyadi, the company’s finance director, said after the IPO, Pool Advista was upbeat about expanding its financing businesses for the productive sectors so that it could meet its net income growth target of 18.5 percent in 2019.
“We expect Rp 27 billion in net profit this year and Rp 32 billion in 2019,” said Raden on the sidelines of the company’s public expose in Jakarta, adding that the company would purchase its current headquarters, which is currently rents, for Rp 45 billion.
He said the multifinance business was facing tougher challenges currently because banks were becoming more selective in channeling funds to multifinance firms.
In such a situation, many banks required multifinance firms to have fixed assets as collateral, Raden said, adding that the acquisition of the new asset could support the company's efforts to get more financing from banks in the future. (bbn)
