Indonesia’s Sanitary Ware Distributor Eyes US$77M via IPO

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JAKARTA (TheInsiderStories)—Japanese sanitary ware brand TOTO’s distributor PT Surya Pertiwi plans to raise up to Rp1.06 trillion (US$77.37 million) from initial public offering (IPO), equal to 26 per cent of its total equity.

The company hopes to price the initial public offering of its stock between Rp1,160 and Rp1,520 a share. Presiden Direktur Tjahjono Alim said on Monday (17/04), the proceed from the IPO will use for debt repayments and to inject capital into its subsidiary PT Surya Pertiwi Nusantara (SPN).

SPN has plan to add two sanitary ware production lines and fittings to a new plant in Gresik, East Java with a production capacity of 500,000 units per year for each line. The company expects to boost its subsidiary’s production capacity to 1.5 million units by 2019.

Surya Pertiwi posted revenue of Rp2.14 trillion last year, rise by 3.38 per cent compared to 2016 of Rp2.07 trillion. The local product’s sales contributed 89.5 per cent, while the imported products sales only contributed 10.5 per cent.

The distributor established in 1917 and became the sole distributor and agent of TOTO since 1968. The company has 11 distributor chains in 14 major cities outside Jakarta areas and Surabaya and it has 100 dealers in both cities.

The current shareholders of Surya Pertiwi consist of PT Multifortuna Asindo and PT Suryaparamitra Abadi with 50 percent ownership. After the IPO, the composition of the company’s shareholders will be changed to 37.04 percent of MFA, 37.04 percent of SPA, 23.33 percent of the public, and 2.59 Employees.

Director of Surya Pertiwi Irene Hamidjaja estimated the sanitary goods will increase in line with the economic growth. The average sales of the company grow 12.2 percent in 2008-2017. This year, the company targeting the sales growth of seven percent to Rp2.29 trillion.

The underwriters for the IPO Ciptadana Sekuritas Asia. The book building is conducting on 16-24 April 2018. The company expects the effective statement from Financial Service Authority to be obtained by May 3, 2018. The public offering will be held on May 4-8, 2018 and listing on the Stock Exchange by May 14, 2018.

After IPO, the shareholders of Surya Pertiwi plans to offer 380 million shares or 14.07 per cent of its paid-in capital for the strategic investors. The two companies desire to look at the major investors of pension funds, insurance companies, long-term international investors, hedge funds, and wealth management global.

As one of Asia’s fastest emerging economies, Indonesia is enjoying a boom in construction. And with this is coming and this is creating big demand for top quality sanitary and bathroom ware in all sorts of building projects. This means lots of opportunities for international brands to make a big splash in Indonesia.