JAKARTA (TheInsiderStories)–Indonesia’s ethanol producer PT Madusari Murni Indah and digital media company PT Arkadia Digital Media Tbk eye Rp357 billion (US$25 million) from initial public offering (IPO) in the third quarter of 2018. So far 595 companies has been listed at Indonesia Stock Exchange (IDX).
Meanwhile, production house company PT MD Picture Tbk (IDX: FILM) officially listed on Tuesday (07/08), pocketing Rp274.63 billion from IPO, lower than the initial target of Rp416 billion. The uncertainty in global market has give pressures on the investors appetite on the local market.
Based on the company announcement, Arkadia Digital will offer 150 million shares or 54.55 percent of its enlarged capital. The company has set the price of IPO at Rp200-Rp400 per share.
Arkadia is conducting book building from July 25 to August 13, and targets to get a permit from the Financial Service Authority by August 20. The IPO is scheduled for August August 21-24, and listed on IDX on August 29.
CEO of Arkadia Digital Media William Martaputra said on Monday (06/08) that the company will maximize revenue from local portal, and plans to officially launch other seven online portals. Arkadia has three subsidiaries namely PT Arkadia Media Nusantara, PT Mata Media Nusantara (MMN), and PT Integra Archipelago Media.
At the same time, Madusari plans to raise up to Rp297.56 billion from an IPO in August. The company will offer 495.94 million shares or equivalent to 20 percent of its total paid up capital. The firm sets the price at Rp500-Rp600 per share.
Madusari starts book building phase on August 6-9, the IPO will take place on August 23-27, 2018 and targets listed on the IDX on August 30. President Director of Madusari Arief Goeadibrata said will use the IPO proceeds to finance company and subsidiaries’ business.
Around 94.45 percent will use to factory expansion to increase production capacity and purchasing new machines. In addition, factory expansion is carried out to reduce dependence on a single raw material namely molasses.
The remaining funds will be used for developing the company’s distribution through its subsidiary in attempts to strengthen its independent distribution channel. The company budgeted Rp30 billion on warehouse construction in East Java that reached 40 percent of completion.
Madusari produces ethanol through its subsidiary of PT Molindo Raya Industrial and produces carbon dioxide gas through PT Molindo Inti Gas. In addition, the company runs trading distribution through PT Sumber Kita Indah.
The company established in Malang, Indonesia in 1965. Madusari later acquired Molindo which was also a competitor’s ethanol producer at the time.
Madusari has annual production capacities of 80,000 kiloliters of ethanol and 15,360 kiloliters of CO2. The firm dominates 55 percent of the domestic market and exports to Asia Pacific, Europe, and Australia.
Film producer own by Punjabi’s family offered 1.307 billion shares representing 13.75 percent of capital in the IPO and issued mandatory convertible bond. MD Pictures appointed PT NH Korindo Sekuritas as executing securities guarantor in this listing process.
The company will allocate IPO proceeds to expand film business, exclusive contract with artists and directors, intellectual property rights development, and animation film development.
MD Pictures booked Rp89.56 billion in net income by Feb. 2018 (year on year), a 173.65 percent rise from Rp56.832 billion from the same period last year. The increase due to digital films sales that recorded Rp35.319 billion and film sales increase driven by Ayat Ayat Cinta 2 film and Rp1.069 trillion in assets.
Indonesia’s film industry recorded a positive trend in recent years indicated by growing numbers of Indonesian movie viewers. In 2017, Indonesia booked 42.7 million cinema viewers which Indonesian movie had 35 percent of market share, an increase from 37.2 million viewers and a 32 percent market share in 2016.
In addition, the local movies recorded higher revenue and booked significant growth to Rp1.6 trillion in 2017. However, Indonesia has low cinemas compared to its regional peers in Asia.
In 2017, the country only has 280 cinemas with 1.359 screens, equivalent to 0.4 screen ratio, significantly lower than Singapura (3,9), Malaysia (2,4), Thailand (1,2), China (1,8), dan India (0,9).
Indonesian government through the Indonesian Creative Economy Agency targets to improve movie theater to 5,000 units with 200,000 screens in five years.