Avian Paint Manufacturer Owned By Conglomerate Hermanto Tanoko Will Spend IDR 750 Billion To Build Third Factory

Avian Paint Factory. (Photo: Doc. Avian Brands)

JAKARTA - PT Avia Avian Tbk has prepared funds of up to Rp250 billion to build a third factory in Cirebon in 2022. The company owned by conglomerate Hermanto Tanoko targets the factory to be completed in 2025.

"The project has the potential to cost up to Rp750 billion. Meanwhile, for next year, the company will spend around Rp250 billion," said Avia Finance Director Avian Kurnia Hadi in a virtual press conference, Friday, November 12.

In addition, said Kurnia, Avian also spends routine spending on machine and infrastructure maintenance. The allocation reaches 1.7 percent to 1.8 percent of sales.

Based on financial reports as of May 31, 2021, Avia Avian recorded net sales of Rp. 2.70 trillion, up 32.29 percent on an annual basis from the previous Rp. 2.04 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 Avian has the potential to distribute a net profit of at least IDR 300 billion in the 2021 financial year.

Based on the prospectus, Avian will be listed on the Indonesia Stock Exchange through an initial public offering (IPO) by releasing a maximum of 6.2 billion new shares with a nominal value of Rp. 10 or representing 10 percent of the issued and paid-up capital after the IPO.

The bid price ranges from Rp. 780 - Rp. 930, so this Avian wall paint producer has the potential to pocket fresh funds of as much as Rp. 5.76 trillion.

A total of 54.50 percent of the IPO funds will be used for working capital. Around 18.20 percent will be injected through additional capital to PT Tirtakencana Tatawarna to be used as working capital.

Meanwhile, around 14 percent will be used by Avia Avian for capital expenditures for the third manufacturing facility in Cirebon, existing manufacturing facilities, and distribution centers.

Meanwhile, this plan will be executed in 2022 - 2024. Around 0.20 percent will be used for IT infrastructure, office equipment, and operational vehicles.

Meanwhile, 1.5 percent will be used for IT infrastructure, office equipment, and operational vehicles at PT Tirtakencana Tatawarna. The remaining 13.30 percent will be used by Avia Avian to pay off the principal bank debt of the company and its subsidiaries.