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Uni-Charm to expand output capacity after launching biggest IPO
With the Rp 1.25 trillion raised from the public offering, Uni-Charm Indonesia has become the largest IPO company this year.
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A stock trader monitors share prices on the trading floor of the Indonesia Stock Exchange (IDX). Uni-Charm Indonesia listed its shares on the IDX on Dec. 17 (kompas.com/File)
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he Indonesian subsidiary of Japanese diaper and feminine-care company Unicharm will use a larger part of the proceeds from its recent initial public offering (IPO), the largest this year, to expand its sanitary napkin and adult diaper production facilities.
Uni-Charm Indonesia president director Yuji Ishii said about 60 percent of the Rp 1.25 trillion generated from the share sales would be used for the expansion of its sanitary napkin and adult diaper production lines.
“Our company is planning to use Rp 800 billion (US$57 million) as capital expenditure (capex) to increase our production capacity,” finance director Onishi Junichiro told reporters after the listing of the company’s shares on the Indonesia Stock Exchange (IDX) on Dec. 17.
With the Rp 1.25 trillion raised from the public offering, Uni-Charm Indonesia has become the largest IPO company this year, beating steelmaker company PT Gunung Raja Praksi, which gained Rp 1.03 trillion from its IPO in September.
According to the company’s prospectus published on the IDX website, it operates four factories in Karawang, West Java, and in Mojokerto, East Java, which produce around 8 billion adult and infant diapers, baby wipes and sanitary pads every year with 80.7 percent factory utilization.
Junichiro said the company would not open any new factories anytime soon as it could still utilize its Mojokerto production facility to house the new machines that would be bought for its production expansion.
The company said in a statement that out of the IPO fund, it would allocate 20.6 percent to repay its debts and 14.8 percent for its working capital.
