JAKARTA (TheInsiderStories) -The subsidiary of Sinarmas Group, PT Asuransi Jiwa Sinarmas MSIG aimed to conduct an initial public offering (IPO) by releasing 420 million shares to the public, said the company in a written statement on Friday (06/21).
Although entering the capital market, but the shares offered to the public are not new shares, PT Sinar Mas Multiartha Tbk (IDX: SMMA), its parent company. Based on the prospectus, the company will release share to the public at the price of Rp12,100 a share and is estimating, Sinar Mas Multiartha will raise fund Rp5.08 trillion (US$362.85 million).
“There is no fundraising for Sinarmas MSIG because there is no new share that will be released to the public. It’s part of Sinar Mas Multiartha divestment,” said President Director of Sinarmas MSIG Hamid Hamzah.
In this corporate action, PT Sinarmas Sekuritas acts as the guarantor of emissions. The company will offer the shares of IPO to the public on July 1 until July. While Sinarmas MSIG is planned to be listed and start trading on the Indonesia Stock Exchange on July 9.
Then, the Financial Services Authority is expected to issue an effective statement for this IPO on June 28.
Last year, the company booked a net premium of Rp4.35 trillion in 2018, increase by 14.77 percent from Rp3.79 trillion in 2017. Total revenues reached Rp5.09 trillion and profit of Rp342.53 billion in 2018.
In 2018, the company’ assets were recorded at Rp15,55 trillion. Whereas Sinarmas MSIG targets net premium income of Rp6.29 trillion for this year.
“Looking ahead, the company’s net premium is expected to rise to Rp6.34 trillion and Rp7.23 trillion in 2020 and 2021,” said Hamzah.
Sinarmas MSIG is a joint insurance company that was established on April 14, 1985. Before being released to the public, Sinar Mas Multiartha’s ownership in the company was 50 percent.
While the rest is owned by Mitsui Sumitomo Insurance Co., Ltd. By this divestment, Sinar Mas Multiartha will only own 10 percent of Sinarmas MSIG’s shares.
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