Avian, Paint Producer Owned By Conglomerate Hermanto Tanoko Promises To Divide Dividends Of Around Rp300 Billion For The 2021 Fiscal Year

JAKARTA - PT Avia Avian Tbk will be listed on the Indonesia Stock Exchange (IDX) in the near future. This paint company owned by conglomerate Hermanto Tanoko promised to distribute a dividend payout ratio (DPR) of at least 50 percent of net profit for the 2021 fiscal year.

The company appointed PT Mandiri Sekuritas as the underwriter for the issuance. Mandiri Sekuritas President Director Oki Ramadhana said, as a sweetener, Avia Avian would distribute up to 50 percent of the DPR.

Oki during a press conference on Friday, November 12, said, based on financial reports as of May 31, 2021, Avia Avian recorded net sales of Rp2.70 trillion, up 32.29 percent on an annual basis from the previous Rp2.04 trillion.

Meanwhile, net profit increased 101.07 percent to Rp603.46 billion from the same period last year Rp300.12 billion. Referring to this data, at least Avia Avian has the potential to distribute dividends of at least Rp300 billion for the 2021 financial year.

"Avian brands are the leader of the market share reaching 20 percent. Avian brands are able to record positive business performance supported by sales of decorative paints and architectural solution products," explained Oki.

Meanwhile, Deputy President Director of Avia Avian Ruslan Tanoko said that after the IPO, the company's valuation will be in the range of 26 to 31 times the price-earnings (PE) of 2022 net profit.

According to him, the company has a complete product portfolio variant and has succeeded in establishing distribution centers spread throughout the archipelago.

For information, as of May 2021, Avian Brands has 96 private distribution centers plus 30 distribution centers from third parties. Overall, the distribution center serves more than 52,000 building material stores spread across Indonesia.

Avia Avian will release a maximum of 6.2 billion new shares with a nominal value of Rp10 or representing 10 percent of the issued and paid-up capital after the IPO. The bid price ranges from Rp780 - Rp930, so this Avian wall paint producer has the potential to pocket fresh funds of as much as Rp5.76 trillion.