IPO, Dwi Aneka expects to reap up to Rp 353.57b

JAKARTA. Packaging company PT Dwi Aneka Jaya Kemasindo is looking to go public to expand its growing business, driven by thriving domestic consumption, and expects to earn between Rp 273.21 billion (US$23.53 million) and Rp 353.57 billion.

Dwi Aneka, which provides offset printing services and corrugated cardboard products, plans to release 642.86 million shares, or 30 percent of its enlarged shares, during an initial public offering (IPO) scheduled for Dec. 6 to 10.

The company would use 60 percent of the funds generated from the IPO for working capital and the remaining 40 percent to finance its capital expenditure (capex) for 2014, primarily for its offset printing division, according to Dwi Aneka president director Andreas Chaiyadi Karwandi.

It has appointed PT NISP Sekuritas as the underwriter for the IPO. The book building period, which began on Nov. 13, runs through Nov. 26 and Dwi Aneka hopes to list its shares on the Indonesia Stock Exchange (IDX) on Dec. 16.

The company is 98.3 percent owned by PT Anugerah Pratama Internasional; 0.7 percent by Andreas; 0.7 percent by Djafar Lingkaran, and 0.3 percent by Witjaksono. Djafar and Witjaksono currently serve as the company’s president commissioner and finance director, respectively.

Dwi Aneka currently operates three plants in Tangerang and serves more than 200 customers in various sectors, including food and beverages, telecommunications, cosmetics and pharmaceuticals. Its clients include food company Orang Tua Group and pharmaceutical firm Kalbe Farma.

“We plan to purchase several new machines to boost the production capacity of our offset printing services to 76,000 tons per year from the current capacity of 36,000 tons per year. We hope all the new machines will begin operating in mid-2014,” Andreas said on Tuesday.

He added that no new investments would be allocated to its corrugated division in 2014 as it had already undergone several capacity improvements this month. Following the improvements, the corrugated division’s annual production capacity stands at 48,000 tons from the previous 24,000 tons per year.

According to Andreas, the company expected the new machines to help meet growing demand from its clients, boosting its total revenue and net profits by double in 2014 from 2013.

In 2013, its revenue target was set at Rp 410.34 billion and its net profits target at Rp 55.16 billion. During the first six months of this year, its revenue reached Rp 185 billion, soaring 87.6 percent year-on-year.

The offset division made up 65 percent of the revenue, followed by offset printing contributing 35 percent. Its latest financial results show that the food and beverage sector has dominated both divisions.

Meanwhile, its bottom line surged almost three times to Rp 29.22 billion in the same period. As of June 2013, its total assets amounted to Rp 913.38 billion, while its liabilities reached Rp 511.67 billion and its equities stood at Rp 401.71 billion.