Home Investor Corner Indonesian Tobacco Releases 29.13% Shares through IPO

Indonesian Tobacco Releases 29.13% Shares through IPO

PT Indonesian Tobacco plans to conduct an initial public offering (IPO) on July 4, 2019 - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesia’s tobacco processing companies, PT Indonesian Tobacco plans to conduct an initial public offering (IPO) on July 4, 2019. The company will offer 274,060,000 shares or around 29.13 percent of the deposited capital.

The company offers stock prices on the Indonesia Stock Exchange (IDX) with a price range of Rp180 – Rp230 per share. The target for obtaining funds from the IPO is around Rp49.33 billion to Rp63 billion.

Indonesian Tobacco President Director, Djonny Saksono, said that the funds obtained would later be used to increase raw material stocks.

“We have to IPO to raise up this company again. Because our market continues to grow and we have exported (to) Malaysia, Singapore (and) Japan,” he told the media in Jakarta, Tuesday (05/28).

In the IPO, the company appoints PT Phillip Sekuritas Indonesia as the guarantor of securities emissions. Later, the funds obtained from this corporate action after deducting share issuance costs will be used entirely for working capital in the form of purchasing raw materials, namely tobacco leaves.

While the shareholders’ structure before the IPO was owned by Saksono 90.10 percent and PT Anugerah Investindo Nusantara 9.10 percent.

Furthermore, the company will divide the portion of tobacco purchases based on the segment of its purchase area, which is 25 percent in Central Java, 50 percent in East Java and Madura, and 25 percent in Bali and Lombok for virginal tobacco types.

As of December 2018, the company’s total liabilities amounted to Rp149.66 billion, consisting of short-term liabilities worth Rp130.15 billion and long-term liabilities of Rp7.98 billion.

On the revenue side, the company posted net sales of Rp134.52 billion, up 18.65 percent on an annual basis. Net income comes from the sale of iris tobacco which has been processed with various factors which are then locally and exported.

The increase in net sales was contributed by local sales which rose 20.11 percent on an annual basis. The current year’s profit reached around Rp8.25 billion, down 4.84 percent on an annual basis. This decline has been illustrated from pre-tax profit which has shrunk 2.56 percent on an annual basis.

The company’s revenue currently comes from sales of rolled tobacco to the domestic market and export markets, namely to Singapore, Malaysia, and Japan.

The company has 22 products, one of which is Manna, which is a mainstay product. Currently, Indonesian Tobacco is penetrating the sale of Manna products in the new region. The product has been present since 2016 and was marketed for the first time in Papua, Manado, and Gorontalo.

Regarding the IPO schedule, the initial offer period for Indonesian Tobacco is May 27-31 2019, while the estimated initial public offering period is June 25 to July 1, 2019. The planned date of listing on the IDX is July 4, 2019.

Some examples of tobacco brands produced by the company are Butterfly, Kuda Terbang, DC 9, Djago Tarung, Mawar Anggrek, Red Flying Horse, Blue Flying Horse, Flying Wheel, Deer, Roadhouse, Candle Lanterns, Butterfly Grapes, Cherry Blossoms, Sago Trees, Deer, Save, and Black Bear.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com

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