Bintraco eyes up to Rp 345 billion from IPO

JAKARTA. Automotive dealership and financing company Bintraco Dharma has announced plans to cash in between Rp 262.5 billion (US$19.7 million) and Rp 345 billion from an initial public offering slated for the first quarter of 2017.

The company plans to offer 150 million newly issued common shares with a nominal value of Rp 100 per share, representing 10 percent of fully paid-up capital.

“The [amount of] funds from the IPO will depend on the share price. But, the company will offer the shares at between Rp 1,750 and 2,300 apiece,” Bintraco president director Sebastianus H. Budi said on Wednesday.

Bintraco will allocate 33 percent of its IPO funds for business expansion, such as opening two new Toyota dealerships in 2017. Another one-third of the IPO proceeds will be used for its capital expenditure, while the rest is for the firm’s working capital such as inventory purchases of car spare parts.

As of September 2016, the company booked revenue of Rp 4.98 trillion, a 23.6 percent increase year-on-year (yoy). The company's total comprehensive income also surged by 54.8 percent to Rp 177 billion in the first nine months of 2016 from the previous year.

The book-building period started on Wednesday and will end on March 9. Meanwhile, the public offering period is scheduled to run from March 21 to 23.

Bintraco’s shares will be traded on the Indonesia Stock Exchange (IDX) from March 30. (Winny Tang)

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