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Indebted Lucy in the Sky resto-bar takes floor on stock exchange
PT Lima Dua Lima Tiga, owner and management of Jakarta-based Lucy in the Sky, raised fresh funds on the IDX to pay wages, training and rent after its income plummeted following last year's large-scale social restrictions.
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The IDX logo is seen in front of a giant screen that displays information of the movement of stock prices at the Indonesia Stock Exchange (IDX), Jakarta, in this file photo. (JP/Seto Wardhana)
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T Lima Dua Lima Tiga, owner of popular Jakarta-based restaurant and bar Lucy in the Sky, raised Rp 33.75 billion (US$2.3 million) through a public listing on Wednesday to pay off bills as last year’s mobility restrictions hit the city’s nightlife industry hard.
The company, listed on the Indonesia Stock Exchange (IDX) as LUCY, plans to use 91.8 percent of the funds to pay wages, train employees, market seven new outlets and pay one year’s rent for its flagship bar located in the prime Senayan Central Business District (SCBD). The remaining 8.2 percent will be used to renovate the bar.
“In early 2020, the industry was shocked by the spread of COVID-19 cases that caused many businesses to stop growing,” wrote the company in a statement.
The company recorded a 10 percent jump in share price upon opening to Rp 110 (0.7 US cents) apiece from Rp 100 within minutes after its shares became available for trading. LUCY sold 337.5 million common shares representing 32.61 percent of its total shares.
Lima Dua Lima Tiga is the 16th company to be listed on the domestic bourse this year. The initial public offering (IPO) came at a time when the restaurant and tourist industry was hit hard by the pandemic.
The Indonesian Hotel and Restaurants Association (PHRI) predicted in October that the total losses suffered by restaurants during the COVID-19 social restriction period could reach Rp 20 trillion and that about 1 million restaurants could close their businesses.
Read also: Up to 30 percent of Jakarta's restaurants could close down: PHRI
