Good News From Dharma Polimetal, TP Rachmat Conglomerate Owned Company That Promises To Share Dividends After IPO

Illustration. (Photo: Doc. Dharma Polimetal)

JAKARTA - The Triputra Group entity belonging to conglomerate TP Rachmat, PT Dharma Polimetal Tbk (DRMA) has prepared a dividend distribution policy of at least 20 percent of net profit.

Based on the company's prospectus, quoted on Tuesday, December 14, this prospective issuer in the automotive component industry plans to distribute a dividend of 20 percent of the net profit in 2022 based on the current year's profit for the 2021 financial year.

"This is done by taking into account the decisions of the shareholders at the GMS," DRMA wrote in the prospectus.

If the GMS approves the distribution of dividends, the dividends will be distributed to all shareholders registered on the date of the list of shareholders entitled to dividends, taking into account income tax and withholding taxes in accordance with applicable regulations, if any.

The determination of the amount and distribution of such dividends will depend on the recommendations of the company's directors by considering several factors, which include, among others, retained earnings, operating and financial results, financial condition, liquidity conditions, future business prospects (including capital expenditures and acquisitions), cash needs, and business opportunities.

Other considerations are the distribution of dividends by subsidiaries to the company and other factors deemed relevant by the board of directors. The Board of Directors of the Company may make changes to the dividend policy at any time, subject to the approval of the shareholders through the GMS.

DRMA sets the final price for the initial public offering (IPO) at Rp500 per share. Dharma Polimetal is ready to release 705.88 million shares to the public or 15 percent of the issued and fully paid capital after the IPO.

Thus, DRMA is eyeing fresh funds from the IPO amounting to Rp352.94 billion. The initial public offering period starts today until December 16, 2021.

The allotment date is December 16, 2021, electronic distribution and listing of shares on the Indonesia Stock Exchange will take place on December 17 and 20, 2021.

"In the event of an oversubscription in the centralized allotment, the company will issue a maximum of 125 million shares representing a maximum of 2.59 percent of the issued and fully paid capital after the IPO with the assumption that there is an issuance of additional shares due to excess subscription in the centralized allotment," the management wrote in the prospectus. .

If the issuance of additional shares is executed, then DMRA has the opportunity to reap IPO funds of up to IDR 415.44 billion. Submission of interest in IPO shares must be submitted directly through an electronic public offering or e-IPO.

Along with the IPO, DRMA 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. DRMA 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.

The company 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. Furthermore, 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.