Hero sets rights offering price at IDR3,200-IDR3,900; 889 mln shares offered | Company data
(The Insider Stories) – Retail group PT Hero Supermarket (IDX:HERO) has set the price of a June limited public offering to existing shareholders of 889 million shares between IDR3,200 and IDR3,900 as it seeks to tap rising local incomes by expanding its existing hypermarket business and add a homeware division via a tieup with European retailer Ikea.
A prospectus says that for every 100 shares owned, shareholders may buy between 23 and 27 new shares, while Netherlands-based Mulgrave Corporation BV, Hero’s majority shareholder with 80.75% % of the company, will divest its rights to a subsidiary, Asia-focused retailer Dairy Farm International Holdings Ltd. (DFI).
Hero will use half the funds raised from the share sale to repay banks, 37% for business expansion including adding new outlets, 10% to open a branch of Ikea, under a franchise deal that next year will launch the first Indonesian branch of the Swedish homeware store, while the rest will be used to strengthen capital. Net income gained 12% to IDR303 billion (US$31.2 million) last year on a 17% increase in revenue to IDR10.5 trillion.
Hero opened a reported 72 new stores last year, including seven Giant Food hypermarkets, 11 Hero and Giant supermarkets, 35 Guardian health and beauty stores and 19 Starmart convenience stores, bringing its total stores to 605.
Giant, Starmart and Guardian are operated by the London-listed Dairy Farm Group, which has secondary listings in Singapore and Bermuda where it is legally based.
