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Packaging company to sell 32 percent of shares in IPO
Cardboard packaging company PT Satya Mitra Kemas Lestari will float its shares on the Indonesian stock exchange to raise funds from the public and thereby strengthen its capital structure and acquire new machines.
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A woman operates an automated scanning and labeling system at the Amazon Fulfillment center in Kent, Washington, DC. Indonesian cardboard packaging company PT Satya Mitra Kemas Lestari Tbk (SKL) will sell 32 percent of its shares to the public in July.
(-/Lindsey Wasson)
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ardboard packaging company PT Satya Mitra Kemas Lestari Tbk (SKL) will float its shares on the Indonesian stock exchange to raise funds from the public to strengthen its capital structure and acquire new packaging machines.
During the initial public offering (IPO) to be held before the company’s shares are listed on the Indonesian Stock Exchange (IDX) on July 11, Satya Mitra will sell 1.3 billion new shares, which account for 32 percent of the company’s enlarged capital.
Marketing and operational director Herryanto S. Hidayat said on Tuesday that the new shares would be sold at a price between Rp 150 (1.1 US cents) and Rp 200 a piece, depending on market demand.
Oktavianus Budianto, president director of PT Kresna Investment, the lead underwriter of the IPO, said SKL would also issue 260 million warrants as a sweetener for the share offering.
Herryanto said in a public presentation that his company would use 40 percent of the proceeds as working capital, 30 percent for refinancing debt and the other 30 percent for capital expenditure.
“We estimate that we will be able pay 5 percent of our total debt with 30 percent of the proceeds,” he said. “We will allocate another 30 percent to purchasing new machines in 2019 and 2020 and acquiring a plot of land in Bekasi, West Java, or in another town in Central Java.”
Oktavianus said SKL would distribute 20 percent of its annual profit as dividends.
According to SKL, its net profit increased by about 35 percent to Rp 45 billion ($3.15 million) in 2018 from Rp 33 billion in 2017, while total revenue increased to Rp2.18 trillion from Rp 1.67 trillion over the same period.
Oktavianus said the book-building of the IPO was scheduled for June 13-20, the offering period for on July 1-4 and the share allotment for July 8, before the listing of the shares on July 11.
Founded in 2001, SKL, the third-largest cardboard packaging company in Greater Jakarta, currently produces corrugated carboard boxes, rigid boxes, paper bags and offset and pre-printing packaging for various companies like Unilever, Adidas, Indofood, Mayora, Samsung and Nestle Indonesia.
Herryanto said he expected that, after the IPO, his company would be able to increase its revenue to Rp 2.31 trillion this year and Rp 2.45 trillion next year. Net profit is projected to increase to Rp 65 billion this year and Rp 80 billion. (nal)
