Multi Makmur Lemindo Official IPO, This Pipe Manufacturer Raises IDR 97.1 Billion To Build Factory

IDX illustration (Photo: Doc. Antara)

JAKARTA - PT Multi Makmur Lemindo Tbk (PIPA) officially listed its initial public offering (IPO) on the Indonesia Stock Exchange (IDX). From this listing, the company achieved Rp97.12 billion in funds.

This fund will be used to build a new factory in Cikande District, Serang Regency, Banten.

President Director of PIPA Junaedi said the company released 925 million shares, equivalent to 27.01 percent of the issued and paid-up capital after the IPO, and recorded 109 excess requests.

Quoting Antara, PIPA shares opened up 34.29 percent to Rp141 from an offering price of Rp105 per share, with a level of Rp141 per share and a low level of Rp135 per share.

PIPA recorded a total trading frequency of 1,193 times with a trading volume of 106.00 million shares and a daily transaction value of Rp1.49 billion.

Junaedi melanjutkan dana hasil IPO akan digunakan untuk pembangunan pabrik baru di tanah seluas 10,952 meter persegi di Kecamatan Cikande, Kabupaten Serang, Provinsi Banten, dengan ke depan seluruh kegiatan produksi perseroan akan berpusat di lokasi tersebut.

"By focusing the company's production activities on Cikande in addition to increasing the capacity and variant of PVC pipeline products, the Company's production process will be more efficient and more optimal," said Junaedy.

In addition, the proceeds from the IPO will be used to expand the distribution network of materials and building materials, especially in the Kalimantan area where increasing demand will be triggered by the development project of the State Capital (IKN).

At the same time, the company issued Series I Warrants which accompanies New shares which are given free of charge to new shareholders with a ratio of 10:9 or a total of 832.5 million Series I Warrants and an exercise price set at IDR 110.

Junaedi said that every IPO process from the beginning until now has made the company more developed in a Good Corporate Governance (GCG) manner, and his party hopes that in the future it can provide added value to all stakeholders.

He conveyed that PVC has bright future prospects due to the advantages of elastic PVC materials, low prices, high durability, and widely used for various needs, such as: PVC ceiling, PVC wallpaper and so on.

PT Multi Makmur Lemindo Tbk has production facilities for PVC Pipes, PVC Fittings, PVC Lem, and other building materials with a installed production capacity of 300 tons located in Tangerang-Banten. Other building materials produced by the company include wood glue, cor buckets, clear buckets, water trunks, and others.