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View all search resultsCap Tikus beer producer seeks to cater to foreign market after IPO
Homegrown alcohol beverage Cap Tikus producer seeks to expand production capacity and sell its product to overseas markets after successfully raising US$11.3 million from an initial public offering (IPO).
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H
omegrown alcohol beverage producer PT Jobubu Jarum Minahasa, known for its brand Cap Tikus, raised Rp 176 billion (US$11.3 million) from an initial public offering (IPO) on Friday, in a bid to expand its production and cater to foreign markets.
The company listed its stock ticker as BEER and sought to use the IPO fund to expand its production capacity by building a new factory and warehouse for raw materials and finished goods. The company said it would start selling its product abroad this year.
“Our initial plan, we looked at the Singaporean market and markets in other European countries. The plan in 2023 is to explore opportunities for export,” said Audy Charles Lieke, CEO of PT Jobubu Jarum Minahasa, speaking at the Indonesia Stock Exchange (IDX), as quoted by Kontan.
Read also: Global beer consumption rises in 2021
The company released 20 percent of its shares to the public, 800 million shares, priced at Rp 220 apiece. The issuance was oversubscribed by 20 times.
Cap Tikus' stock price has risen 11 percent to Rp 262 apiece as of Monday, a day after its IPO.
Foreign investors, such as those from China and India, have also acquired and expressed interest in being among the firm’s shareholders, according to the company’s statement.
Its listing marked it as the third alcohol beverage producer in the country to go public after PT Delta Djakarta and PT Multi Bintang Indonesia.
Read also: Indonesia’s rich and complex independent alcohol industry
Bali-based wine producer PT Hatten Bali followed as the fourth alcohol producer to be listed on the IDX with its stock ticker WINE, raising more than Rp 87 billion, which it will use to finance its business expansion. The company said last month that it aimed for export after its IPO.
Global beer consumption grew 4 percent year-on-year (yoy) in 2021, marking the first rise in two years after the COVID-19 pandemic hampered demands for alcoholic beverages, according to data released by Japan-based beverage company Kirin Holdings Co., which signaled a good prospect for the alcohol beverage industry.
Nicodimus Kristiantoro, research and consulting manager at PT Infovesta Utama told Kontan last month that alcohol beverage producers may benefit from a promising outlook in 2023, following the return of the travel and tourism sector.
However, an upcoming bill on alcohol beverages prepared by the House of Representatives could affect the prospect of the industry, as it may include rules to limit distribution of alcohol beverages in the country, which will affect the performance of the industry.
