JAKARTA (TheInsiderStories) – Indonesia’ steel producer, PT Gunung Raja Paksi Tbk (IDX: GRP) set the initial public offering (IPO) price in the range Rp825 (US$0.058) to Rp900 a share, the management said on Tuesday (09/3).
The company plans to offer 1.24 billion new shares or 10.21 percent of the total shares and paid-up capital and expect to collect funds up to Rp1.12 trillion.
Managing Director of GRP, Alouisius Maseimilian said that 99.52 percent of funds will be used to pay off debt, operating costs and for working capital.
He explained through the IPO, GPR has the ability to develop the steel business in Indonesia to grab the growing demand in the national steel consumption along with the accelerating the government’ infrastructure projects.
“Indonesia’ per capita steel consumption was also still quite low and domestic steel production capacity was still unable to meet demand,” the CEO told media.
Together with the IPO, the company also issue the obligatory convertible bond which will mature on Sept. 30, 2019, in the amount of Rp1.41 trillion.
In this corporate action, the company appointed PT Kresna Sekuritas and PT UOB Kay Hian Sekuritas as joint lead underwriters. Gunung Raja Paksi will hold an initial offering on Sept. 3 – 5 with a public offering period on Sept. 12 – 13. The producer targeting listing at the Indonesia Stock Exchange on Sept. 19.
In the first quarter of 2019, Gunung Raja Paksi recorded sales $212.13 million or decrease 15.18 percent from previous periods of $250.1 million.
In line with the decline in revenue, operating profit was also corrected quite sharply 83.7 percent on an annual basis to $3.96 million from the previous period of $23.3 million.
Total assets of GRP worth of $1.09 billion with liabilities of $553.28 million and total equity of $533.67 million.
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