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Japan-based diaper producer to launch Indonesia’s biggest IPO this year
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PT Uni-Charm Indonesia plans to sell about 20 percent of its enlarged shares during an initial public offering (IPO) to be held in December this year. (Shutterstock/File)
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T Uni-Charm Indonesia, the local arm of a Japan-based diaper and feminine-care firm, Unicharm, plans to soon launch Indonesia’s largest initial public offering (IPO) to raise funds to pay debts and expand production capacity.
The company expects to raise between Rp 1.16 trillion (US$82.85 million) and Rp 1.5 trillion in fresh funds from sales of 831.31 million new shares, about 20 percent of the company’s enlarged capital. The shares are to be offered to the public in December this year for between Rp 1,400 and Rp 1,800 apiece.
Should Uni-Charm be able to sell its shares at its maximum offering price, it would become the largest IPO on the Indonesia Stock Exchange (IDX) this year.
Currently, biggest IPO is held by steelmaker Gunung Raja Paksi, which raised Rp 1.03 trillion during its IPO in September.
Although transactions involving shares sale of firm Asuransi Jiwa Sinarmas MSIG were worth Rp 4.76 trillion in July this year, the action could not be categorized as an IPO because it was a divestment made by its parent company PT Sinar Mas Multiartha Tbk.
Uni-Charm Indonesia plans to use 20.6 percent of the IPO proceeds to repay its loans and 14.8 percent for fees, working capital and general corporate purposes. Meanwhile, the remaining 64.6 percent of the proceeds would be used to fund its capital expenditures (capex).
“The proceeds will be used to fund our capex for the next two to three years and we will invest some of them to buy more machines for our feminine and adult diaper products,” said Onishi Junichiro, Uni-Charm Indonesia's finance director, in a press briefing on Monday.
