Kompas unit expects to raise Rp 500 billion

JAKARTA. Event organizer PT Dyandra Media International, a business unit of Kompas Gramedia Group, expects to reap Rp 500 billion (US$51.48 million) from the company’s initial public offering (IPO) next month.

Dyandra plans to sell 1.28 billion new shares, or 30 percent of its enlarged shares, during the public offering, which is scheduled to take place on March 15, 18 and 19. It has appointed PT Mandiri Sekuritas and PT OSK Nusadana Securities Indonesia as underwriters for the IPO.

The shares will be sold at a price range between Rp 315 and Rp 415 apiece. The company will organize road shows to Hong Kong, Malaysia and Singapore to promote the IPO to foreign investors. It hopes to list the shares on the Indonesia Stock Exchange (IDX) on March 25.

Dyandra currently operates two main businesses, event organizing and property development. Event organizing accounts for 70 percent of revenue, followed by property with the other 30 percent.

 It holds about 700 events per year, ranging from business exhibitions to music concerts, including the Indonesia International Motor Show and Indocraft.

Dyandra’s income is also generated from the use of its own convention halls in Medan, North Sumatra, and Surabaya, East Java. Meanwhile, in the property sector, the company runs its accommodation business through its Santika and Amaris hotel brands.

If the IPO goes as planned, Dyandra will be the first event organizer firm in the country to go public, according to Mandiri Sekuritas investment banking director Donny Arsal. “We used two evaluations when determining Dyandra’s share price range because there is no benchmark yet for a publicly listed company in the event organizer business. So, we evaluated each business and combined the two results,” he said.

The company plans to use the proceeds from the IPO to partially finance its business expansion projects. Dyandra operational director Danny Budiharto said that it would set aside Rp 1 trillion for its 2013-2014 capital expenditure budget. The rest of the budget would be financed from bank loans.

 Dyandra is completing the construction of a convention hall in Nusa Dua, Bali, which will be used as the venue of this year’s Asia-Pacific Economic Cooperation (APEC) meetings.

It is also building a convention hall in Bumi Serpong Damai (BSD), Tangerang. “The BSD project will be completed in June 2014. Meanwhile, next month we will start our third convention hall project in Makassar, South Sulawesi, and it is expected to be finished in late 2014,” Danny said.

This year, Dyandra expects to book Rp 1.17 trillion and Rp 86.8 billion in net revenues and net profits, respectively. Last year, Dyandra’s net revenues grew 73.7 percent to Rp 640 billion, while its net profits jumped fivefold to Rp 64 billion.

As of December 2012, its total assets reached Rp 1.6 trillion. Its liabilities stood at Rp 978 billion and its equities amounted to Rp 622 billion. (Tassia Sipahutar, The Jakarta Post)