Milk producer PT Cisarua Mountain Dairy, better known as Cimory, has listed its shares on Indonesia’s stock exchange.

Cimory, which was established in 1993, raised Rp 3.66 trillion (US$2.54 million) with 1.19 billion shares sold at Rp 3,080 apiece in its initial public offering (IPO). The shares account for 15 percent of the company’s capital.

“This IPO is a historic moment for our company, where we transform from a family company into a public company that has a strong commitment to good governance and focus on sustainable growth,” Bambang Sutantio, the founder and president commissioner, said at the IPO ceremony at the Indonesia Stock Exchange (IDX) on Monday.

Domestic fresh milk production in Indonesia increased 0.33 percent to 947,685 tons in 2020, reversing a contraction in the preceding year, Statistics Indonesia (BPS) data show.

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Cimory, which trades under the ticker symbol CMRY, plans to spend one third of the fresh funds to increase its production capacity through improved properties, factories and tools.

The dairy firm plans to spend another 15 percent of the funds to expand its distribution channels by adding new stores and hiring more sellers under its Miss Cimory program. The company has earmarked another 7 percent of the funds for daily operations.

“Right now, we are partnered with more than 3,600 women across Indonesia through this Miss Cimory program, which aims to create new jobs,” president director Farell Sutantio was quoted in a press release as saying on Monday.

PT Macroprima Panganutama (MP), the company’s food manufacturing subsidiary, will get 25 percent of the funds as working capital and to increase the capacity of production facilities.

Around one fifth of the funds will go to PT Macrosentra Niagaboga, the company’s agent and distributor subsidiary, as working capital that will help it expand distribution centers.

Cimory recorded a 115.1 percent increase in net sales to Rp 1.58 trillion in the first six months of 2021 from a year earlier. As a result, the company booked Rp 364.5 billion in net profit in the first half of the year, marking an increase of 799 percent from a year earlier.

During the IPO, the Manila-based Asian Development Bank (ADB) subscribed to around 19.4 million shares worth Rp 59.9 billion.

The ADB says it participated to support the company’s expansion, which is expected to improve consumer access to nutritious food and support livelihoods across the dairy value chain, including smallholder farmers.

“Through this investment, ADB and Cimory are able to work together to improve farmer livelihoods and rural welfare, promote gender inclusion, and make a significant contribution to food security,” ADB private sector operations investment specialist Carine Sophie Donges was quoted in a press release as saying on Monday.

ADB is expecting the expansion to benefit an additional 4,200 dairy farmers, 5,000 female sales agents and reach out to an additional 500,000 households each year. The development bank also expects the expansion to serve most of Java and many regions of Sumatra, Kalimantan, Sulawesi and Papua.

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