JAKARTA (TheInsiderStories)– Indonesia’s Pizza Hut fast food operator,
PT Sarimelati Kencana Tbk eyeing Rp815.9 billion (US$59.13 million) funds from its initial public offering (IPO), said the company on Monday (23/04).
The company will release a maximum of 604.37 million new shares or 20 percent of the issued and fully paid capital in the second quarter of this year. The operator set the IPO price in the range of Rp 1,100 to Rp 1,350 a share.
Primonanto Budi Atmojo, Director of Mandiri Sekuritas said, the price reflects the price to earnings ratio of 21 times up to 26 times.
Furthermore, the company set the book-building period from April 23 to May 3 and list the shares in Indonesia Stock Exchange (IDX) on May 23. Proceeds from the IPO will be used for capital expenditure–including to increase the number of new outlets and renovate the Pizza Hut outlet–and to pay part of the loan facility of a bank or financial institution.
According to Budi Setiawan, Director of Sarimelati Kencana, until the end of 2018, the company will open 60 outlets to 65 Pizza Hut outlets.Sarimelati wants to increase sales outside Java Island. Because the number of outlets in Java has more than outside Java. Throughout this year, a total of 15 new outlets have opened.
By the end of 2017, the unit of private food & beverages company PT Sriboga Raturaya has operated 237 Pizza Hut restaurant and 156 Pizza Hut Delivery outlets spread across 76 cities and counties across Indonesia.
For the IPO, Sarimelati appoints three underwriters namely PT CGS-CIMB Sekuritas Indonesia, PT CSLA Sekuritas, and Mandiri Sekuritas.
Sribog Raturaya owns and operated various companies across a range of sectors and continues to diversify international brands including Mitsubishi Corp, Nissin, and YUM! brands.
The holding company is strategically positioned to tap into Indonesia’s growing ranks of middle class consumers by staying ahead of emerging trends through rigorous market analysis to gain consumer insights.
Sriboga Raturaya’s key positioning allows for further growth in the local Indonesian F&B market, and to take advantage of opportunities across the archipelago and the ASEAN through further expansion within franchise outlets, distribution networks and product penetration.
Euromonitor International reported, the Indonesian pizza market is forecast to expand to Rp8.81 trillion by 2021, up from Rp5.76 trillion rupiah in 2016. According to the consultancy agency, Pizza Hut is the most popular pizza restaurant operator in the country, commanding more than 70 percent of the market last year, followed by Domino’s with 6.1 percent.