The Flexible Movement Of Conglomerate Hermanto Tanoko After Inter-Depot Building IPO Rp493.57 Billion, Wants To Add 3 More Outlets

Building Depot Outlet. (Photo: Wikimedia Commons)

JAKARTA - Wijono & Hermanto Tanoko are the 11th richest people in Indonesia in 2021 with assets reaching US$3.3 billion or around Rp47.08 trillion. At the end of 2021, Hermanto Tanoko's business movements are even more flexible, because he managed to reap jumbo funds from the capital market.

Crazy rich from Surabaya has a number of issuers on the Indonesia Stock Exchange such as PT Repower Asia Indonesia Tbk (REAL), PT Sariguna Primatirta Tbk (CLEO), PT Avia Avian Tbk (AVIA), and not to forget PT Caturkarda Depo Bangunan Tbk. (DEPOT).

The last two companies are new issuers which IPO at the end of 2021. This means that the two companies still have a 'mountain' of money to realize their corporate action plans.

It is the issuer of the building materials supermarket, PT Caturkarda Depo Bangunan Tbk (DEPO), which has finally opened its first corporate action leap since its listing on the stock exchange.

For the record, DEPO was listed on the stock exchange at the end of November 2021 with fresh funds of Rp493.57 billion. Entering the new year, they officially injected additional capital of around Rp. 201.38 billion for PT Megadepo Indonesia, a subsidiary that manages outlets under the Depo Bangunan brand.

In the information disclosure document released last weekend, quoted on Tuesday, January 4, as much as Rp120 billion or 59.58 percent of the funds will be used for capital expenditures for the purpose of opening new outlets and renovating old outlets.

"The subsidiary plans to expand its outlet network to cities in eastern Indonesia," said DEPO Corporate Secretary Erwan Irawan Noer.

Meanwhile, around Rp81.38 billion or the remaining 40.42 percent will be allocated for Megadepo's working capital.

"Working capital includes operational costs, business development, payment of trade payables and development of subsidiary information technology systems, as well as HR development and training costs," Erwan added.

This action of increasing capital above 20 percent of equity is part of the realization of DEPO's promises when it was first listed on the stock exchange, early last December. At that time, DEPO management promised to be aggressive in adding more outlets.

As of the end of last year, DEPO only had about 10 Depo Building outlets spread across Jakarta, Serpong, West Java, East Java, Bali and Lampung. The target is, from the proceeds from the IPO, DEPO plans to add at least 3 new outlets.

The old outlets will also have their capacity and infrastructure strengthened. From this strengthening, it is expected that visits and transactions will also increase. Currently, DEPO outlets are visited by an average of 1,000 people per day in the middle of the week and 3,000 people per day on weekends.