Xolare RCR Energy (SOLA) Goes Public on the IDX, Here's Its Business Target for 2024

LISTED COMPANY - JAKARTA. PT Xolare RCR Energy Tbk (SOLA) officially debuted on the Indonesia Stock Exchange (BEI) on Wednesday (8/5).

SOLA set its initial public offering (IPO) price at IDR 110 per share. SOLA opened trading at IDR 148 per share.

SOLA offered 656.25 million shares, equivalent to 20% of the issued and paid-up capital, and successfully raised fresh funds amounting to IDR 72.19 billion.

Xolare RCR Energy's CEO, Mochamad Bhadaiwi, stated that about 71.22% of the IPO proceeds, after deducting issuance costs or equivalent to IDR 51.38 billion, will be used to increase capital in five Xolare business entities.

The five companies are PT Xolabit Bitumen Industri (XBI), PT Aspal Polimer Emulsindo (APE), PT Modifikasi Bitumen Sumatera (MBS), PT Aplikasi Bitumen Indonesia (ABI) and PT Bumiraya Energi Hijau (BEH).

Meanwhile, the remaining IPO proceeds will be used for the company's working capital, including the purchase of asphalt supplies, office operational costs, marketing expenses, and vehicle leasing costs.

Bhadaiwi revealed that based on the company's capital expenditures (capex), it plans to build a factory in Tuban and expand a factory in Demak. In addition, the company is working on a plan to build a factory in the Capital of the State (IKN) with an investment value of IDR 10 billion, targeted to be operational this year.

“The land is ready, we are just waiting for the approval process,” Bhadaiwi told Kontan on Wednesday (8/5).

The company, which operates in the trade and processing of asphalt, as well as construction services, currently supplies asphalt trade to road contractors and mining contractors for roads in mines. In addition, the company also supplies its subsidiaries with modified asphalt products.

In its statement, the company achieved sales of IDR 15 billion in the first quarter of 2024. The company targets a profit of IDR 30 billion and revenue of IDR115 billion in 2024.