Batam-based electronics component maker PT Sat Nusapersada, fresh from its IPO, plans to build a new factory and acquire stakes in two other companies next year to expand its operations and meet the growing demand for its products.
While the details remain sketchy, president director Abidin told reporters Thursday that the company would buy a stake in PT SM Engineering and the assets of PT Sat Nusapersada Brothers at a cost of Rp 23 billion (around US$2.5 million).
"The acquisitions and the factory building are part of the company's strategy for future growth, which will involve capital strengthening, diversifying customer segmentation, and appointing representatives in Singapore and Japan.
"We will also use advanced technology machinery to produce high-end products," said Abidin on the same day as his company's shares were listed on the Jakarta Stock Exchange for the first time.
The shares closed Thursday at Rp 640, almost 10 percent higher than the opening price of Rp 580.
With all its aggressive moves, the company expects to more than double next year's profit to Rp 79 billion from an estimated Rp 35 billion this year.
As of the end of September, PT Sat Nusapersada had booked Rp 33 billion in pre-tax profit.
The company has now sold 30 percent of its shares on the JSX through an IPO that raised Rp 308 billion in fresh funds.
Akhabani, director of investment banking at PT Trimegah Securities, the IPO's underwriter, said that foreign investors bought 93.7 percent of the shares on offer.
Sat Nusapersada was established in 1990 and produces a wide range of electronics components, including components for car audio systems, power units, television tuners and exhaust fans.
It currently supplies dozens of manufacturers, including Sony, Epson, Kenwood, Philips, Sanyo, Japan Servo, TEAC, Thomson Multimedia and Minebea Electronics Motor. (trw)