Mitra Adiperkasa to sell 30% stake via IPO<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Retail company PT Mitra Adiperkasa announced on Wednesday that it
\nwould sell 30 percent of its shares to the public via an initial
\npublic offering (IPO) in November to help fund its business
\nexpansion and debt refinancing.<\/p>\n
Mitra is the local operator of several internationally
\nlicensed stores, such as Sogo, Dabenhams, Starbucks Coffee, Golf
\nHouse, The Athlete's Foot, Reebok, Sports Station, Marks &
\nSpencer, Spice Garden, Books Kinokuniya, and Strandbags.<\/p>\n
Mitra finance director Susiana Latif said the company would
\noffer 30.1 percent of its stake or 500 million shares offered at
\nbetween Rp 675 and Rp 975 per share, with a proceed expectation
\nof about Rp 480 billion (US$53.3 million).<\/p>\n
\"Proceeds from the IPO will be mostly allocated for business
\nexpansion, such as for opening new stores and chains or for
\nrenovating existing ones,\" said Susiana during a public
\npresentation to investors and reporters.<\/p>\n
Susiana explained that 50 percent of the proceeds would be
\nused for the planned expansion, 30 percent for paying part of the
\ndebts owed by the company and its subsidiaries, and 20 percent
\nfor improving the infrastructure and working capital.<\/p>\n
Mitra will offer the shares from Nov. 2 until Nov. 4, with
\nMandiri Securities acting as the arranger for the IPO. The shares
\nwill be listed on the Jakarta Stock Exchange on Nov. 10.<\/p>\n
Established in 1995, Mitra is controlled by the Gozali family,
\nwho is linked to indebted business tycoon Sjamsul Nursalim. The
\nfamily has a string of companies involved in a wide range of
\nbusinesses, including property and agribusiness.<\/p>\n
At present, the company owns licenses to market around 50
\ninternational brands in Indonesia, with 460 retail outlets under
\nits operation.<\/p>\n
The company plans to open as many as 70 outlets per year and
\nto continue adding new brands to its existing portfolios, such as
\nsecuring new licenses to manufacture and distribute Spalding from
\nUnited States and Ellesse from Italy in Indonesia.<\/p>\n
Lower production costs have enabled Mitra to sell its
\ninternationally licensed goods at competitive prices. For
\nexample, the company can sell its sports shoes at around 20
\npercent premium to the local brands.<\/p>\n
Susiana said the company expected sales to grow by 12.4
\npercent this year to Rp 2.26 trillion from Rp 2.01 trillion last
\nyear, with a net profit estimated to reach about Rp 102 billion
\nas against Rp 74.2 billion last year.<\/p>\n
As for next year, the company projects sales to grow by 28
\npercent to Rp 2.9 trillion, with a net profit of Rp 140 billion.<\/p>\n
As a major player in the country's up-market shopping centers
\nand outlets, Mitra targets more resilient urban consumers with
\nunlimited spending power.<\/p>\n
The segment targeted by the company is those with monthly
\ndisposable incomes in excess of Rp 1 million. Although such
\nconsumers are concentrated in a few cities and are relatively few
\ncompared to the country's whole population of 220 million people,
\nthe number is expected to rise on the back of the improving
\neconomy.<\/p>\n
Jakarta accounted for 73.4 percent of Mitra's sales last year,
\nfollowed by Surabaya with 12.2 percent, Makassar with 3 percent,
\nBandung with 2.7 percent, Bali with 1.9 percent and Medan with
\n1.7 percent.<\/p>\n
Performance of major retail companies 2003
\n(in billions of rupiah)<\/p>\n
Sales Assets Operating Net profit<\/p>\n
revenue<\/p>\n
Matahari 5,065 3,421 151 115<\/p>\n
Ramayana 3,553 2,512 360 303<\/p>\n
Alfa 3,615 663 1 7<\/p>\n
Mitra Adiperkasa 2,014 1,244 122 74<\/p>\n
Great River 509 1,123 78 16<\/p>\n
Source: Mitra Adiperkasa<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/mitra-adiperkasa-to-sell-30-stake-via-ipo-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }