Sanitary-maker, PT Uni-Charm Indonesia Tbk. (IDX: UCID) will use the funds from the initial public offering amounting to Rp1.25 trillion (US$89 million) for buyback shares - Photo by the Company

JAKARTA (TheInsiderStories) – Sanitary-maker, PT Uni-Charm Indonesia Tbk (IDX: UCID) will use the funds from the initial public offering (IPO) amounting to Rp1.25 trillion (US$88.65 million) for buyback shares, said the company on Monday (11/30). The decision has been made after the manufacturer delayed some of this year’ investment plans.

Finance director of the issuer, Junichiro Onishi, said the effect of the COVID-19 pandemic and low demands have disrupted the investment schedule. Initially, the IPO proceeds were allocated for the revitalization of machines for baby diapers.

Uni-Charm was officially listed on the Indonesia Stock Exchange on Dec. 12, 2019 after released 831.31 million new shares with an exercise price of Rp1,500. Part of the proceed has used for capital expenditure Rp27.09 billion, debt payments Rp271.17 billion, and working capital Rp70.57 billion or in total Rp 368.84 billion.

Onishi stated, the producer also has give a dividend payment of Rp 80 billion in 2020. Until the end of September, the company recorded a net income of Rp6.2 trillion, a slight decrease of 0.83 percent in annual basis. The net profit plunged 39.3 percent to Rp 199.84 billion as the result of foreign exchange losses Rp143.37 billion.

Uni-Charm currently has four production facilities in Karawang, West Java and began the operations in June 1997. Then the second factory in the same location began the operation in June 2010.  In September 2013, the third factory build in Mojokerto, Central Java began operating.

The aggregate production capacity of the plants is around 8.49 billion, 8.75 billion, 8.81 billion and 4.41 billion units per year, respectively. While, the aggregate utilization rates from production facilities in all products are around 82 percent, 84 percent, 77 percent, and 80 percent.

Then, in December 2017, the company completed the acquisition of 99.0 percent ownership in a subsidiary company from Unicharm Kokko Nonwoven Co., Ltd., a member of the Unicharm Group. The issuer is a subsidiary of Japan’ Unicharm Corp., with 59.20 percent ownership, Purinusa holds 20.80 percent and public 20 percent.

The diaper market in Indonesia is currently estimated at $1.6 billion, the sixth largest in the world, with approximately five million annual births.

US$1: RP14,100

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