PT Matahari Putra Prima Tbk (IDX: MPPA), plans to offer new shares to raise up to Rp800 billion (US$55.17 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian retailer, PT Matahari Putra Prima Tbk (IDX: MPPA), plans to offer new shares to raise up to Rp800 billion (US$55.17 million), said the management on Thursday (04/30). The proceeds will be used to support the company’ goal to become a retailer with a leading omni-channel, strengthen network and logistics, and big data analysis capabilities.

The program came after the parent, PT Multipolar Tbk (IDX: MLPL), sold 11.9 percent of its shares for Rp362.11 billion. Singapore’ Panbridge Investment bought 3.33 percent of the hypermart operator, Threadmore Capital buys 3.8 percent, and the Jakarta-based Pradipa Darpa Bangsa, was rumored affiliated to super-apps provider GoJek, bought 4.76 percent.

After get the fresh funding, said the CFO, Herry Senjaya, Matahari targeting to open around six new stores by 2021. The company allocated capital expenditure Rp50 billion in this year. While, the spokesman, Danny Kojongian, the retailer aimed to strengthen the format of Hypermart, HyFresh, Primo, Foodmart, Boston Health & Beauty, FMX and SmartClub outlets.

“HyFresh will become a new format with further development. We see that the retail market, especially during the pandemic, is starting to lead to smaller, but accessible stores. However, we will still maintain Hypermart outlets,” explained Konjongian.

In March 2020, Matahari has launched eComm Express Delivery & Next Day, WhatsApp Chat & Shop and Park & ​​PickUp services. Since then, the eComm Express Delivery service has grown from 20 outlets to 111 outlets. Meanwhile, ordering services through WA are available at 128 MPPA retail outlets.

The company is also diligent in establishing partnerships with digital platforms and marketplaces. Since August 2020, Matahari has collaborated with GrabMart, and until April 23, 2021, there have been 103 stores registered on GrabMart.

In September 2020, Matahari also collaborating with Shopee, which until April has registered 81 stores. Then, in December 2020, the unit of Lippo Group collaborated with Tokopedia, and until now there are 64 registered stores. The group also partnered with BliBli and has registered 81 stores.

In this year, the company optimistic the sales could grow by 10 percent despite the COVID-19 pandemic. Beside, to make an efficiency, the store manager has temporally suspended several outlets. The issuer also carried out several business strategies, like strengthening the omni channel and digital shopping services.

Kojonginan said the contribution of online sales is targeting around 10 – 15 percent by the end of this year to  Matahari‘ revenues. While, Multipolar as an investment company that focuses on the retail and telecommunications, multimedia and technology segments, the investment company is still looking for new opportunities in start-up companies, especially in the health and travel sector.

The parent also opens opportunities for local and foreign investors who wish to become strategic partners or invest in their subsidiaries. The company has an investment portfolio in Matahari, PT Matahari Department Store Tbk (IDX: LPPF), PT Multipolar Technology Tbk (IDX: MLPT), and PT First Media Tbk (IDX: KBLV).

Multipolar also controls 100 percent of shopping center and office management companies, such as PT Nadya Putra Investama and PT Matahari Pacific. Also indirect ownerships  of Mbiz’ e-commerce shares. The technology firm is optimistic that its business entities will experience sustained growth.

US$1: Rp14,500

Written by Staff Writter, Email: theinsiderstories@gmail.com