Automotive Components Company Owned By Conglomerate TP Rachmat Plans On IPO, Targeting To Raise IDR 437 Billion In Funds
JAKARTA - PT Dharma Polimetal Tbk or Dharma Group is preparing to take the floor on the Indonesia Stock Exchange (IDX) by conducting an initial public offering (IPO). The company, which is a subsidiary of the Triputra Group owned by conglomerate TP Rachmat, will release a maximum of 705.88 million shares or 15 percent of the company's issued and paid-up capital after the IPO.
Based on the prospectus, quoted on Friday, November 19, the company which is engaged in the automotive component business is offering an IPO price in the range of IDR 500-IDR 620. As a result, the company is targeting fresh funds of around IDR 352.94 billion to IDR 437.64 billion.
"In the event of excess orders in the centralized allotment, the company will issue a maximum of 125.000.000 representing a maximum of 2.59 percent of the issued and fully paid capital after the IPO with the assumption that there are additional shares issuance due to excess orders in the centralized allotment," the management wrote in the prospectus. .
Along with the IPO, the Company held an Employee Stock Allocation (ESA) program for a maximum of 70.58 million shares or 10 percent of the total shares offered in the IPO.
The prospective issuer who will get the DRMA stock code plans to absorb 70 percent of the IPO funds for capital expenditures, including the construction of a new factory in an area of 0.48 hectares on the company's land in Cikarang, West Java. Dharma Group will also absorb 16 percent of the IPO funds to increase capital for its subsidiaries, namely PT Dharma Precision Parts and PT Dharma Controlcable Indonesia.
Not to forget, as much as 9 percent of the IPO funds will be used to increase the company's ownership in PT Dharma Poliplast through the purchase of shares from Thio Yudi Suherman a maximum of 44 percent. Currently, the company's ownership in the subsidiary is around 55 percent and will be 99 percent.
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For information, Dharma Group was founded in 1989, engaged in the business of automotive components for motorcycles and cars. Dharma Group has become part of an integrated automotive supply chain with innovative and quality spare parts and components products according to world-class manufacturer standards.
As a subsidiary of the Triputra Group, the company has an experienced management background in the national automotive industry. Meanwhile, PT CIMB Niaga Sekuritas and PT Sucor Sekuritas are the underwriters for the Dharma Group IPO issuance.
The following is the company's IPO schedule:
- Initial Offer Period: November 19 - 30, 2021
- Estimated Effective Date: December 8, 2021
- Estimated Initial Public Offering Period: December 9 – 15, 2021
- Estimated Allotment Date: December 15, 2021
- Estimated Electronic Stock Distribution Date: December 16, 2021
- Estimated Listing Date on the Indonesia Stock Exchange: December 17, 2021.