Multikarya Asia Pasifik Raya (MKAP) Targets Revenue Increase Up To 70%

February 13, 2024, 12.29 AM | Reporter: Aulia Ivanka Rahmana

ILUSTRASI. PT Multikarya Asia Pasifik Raya Tbk (MKAP), a company that provides goods and services supporting the energy and oil and gas industries.

ISSUER - JAKARTA. Post-IPO, PT Multikarya Asia Pasifik Raya Tbk (MKAP) is targeting revenue growth of 60% to 70% in 2024.

The CEO of Multikarya Asia Pasifik Raya, Eric Handoko, said the company has set a performance growth target of up to 70% compared to revenue in 2023.

"In 2024, the growth target might see an increase of about 60%-70%," said Eric when met at the Indonesia Stock Exchange (IDX) building, Monday (12/2).

By becoming a listed company, the company will be able to improve its Good Corporate Governance (GCG) function, thereby increasing management professionalism and transparency.

“The company's performance so far has been recording positive revenue growth, the IPO proceeds will be used for the company," said Eric in the first trading, Monday (12/2).

Furthermore, Eric said, that after the public offering, the company will receive IPO funds that will be used for working capital such as operational costs, payments to suppliers, and heavy equipment repairs (machines, pumps, and transmissions) to support ongoing project funding to reduce banking funding costs and thus increase the company's profitability.

MKAP was officially listed on the Indonesia Stock Exchange (IDX) on Monday (12/2). MKAP set the offering price at IDR 115 per share. This price almost touched the upper limit of the initial offering price or book building in the range of IDR 105 to IDR 120 per share.

Just a reminder, MKAP has released as many as 650 million shares or 20.00% of the total issued and paid-up capital after the IPO. As a result, MKAP is targeting a maximum fund of IDR 74.75 billion from this corporate action.

All funds obtained by MKAP from the initial public offering will be used for working capital, which among other things but not limited to operational costs, payments to suppliers, and repairs of heavy equipment such as machines, pumps, and transmissions.

Just so you know, MKAP is a company engaged in manufacturing, trading services, rentals, repairs, and spare parts for oil & gas industry pumps & mining.

Since 2018 until now, MKAP has successfully obtained contracts for the supply of products or services for oil and gas projects from various leading companies, such as PT Pertamina EP, Chevron, Freeport McMoran, Grasberg, and PT Bukit Asam Tbk (PTBA).

In line with business expansion and upstream oil and gas needs in Indonesia, MKAP has been able to obtain new agency rights for Pumpworks 610 (2020) and the WEG brand (2023).

MKAP also has several workshops located in Jakarta, South Sumatra, and West Java. MKAP's workshop in Lembak, South Sumatra, is capable of supporting a large population of gas engines/generators for the Sumatra area with more than 40 units.