Will IPO October 11, Koka Indonesia Targets Fresh Funds Of Up To IDR 115 Billion

Director of Finance of Koka Indonesia Michael Albert (center). (Photo: Theresia Agatha/VOI)

JAKARTA - The industrial building construction service company, PT Koka Indonesia Tbk (KOKA) plans to take the floor on the Indonesia Stock Exchange (IDX) on October 11, 2023.

The company plans to release as many as 715,333,000 shares or about 25 percent of the issued and fully paid capital after the public offering.

The share price offered is in the price range between Rp128 to Rp161 per share.

That way, KOKA has the potential to pocket fresh funds worth IDR 91 billion to IDR 115 billion.

KOKA itself has appointed PT UOB Kay Hian Sekuritas as the Implementing Underwriter in this initial public offering.

Currently, the KOKA IPO plan has entered its initial offering period which will end on September 26.

Effective Statements from the Financial Services Authority (OJK) are expected to be obtained on September 29, 2023, so that the public offering period can take place on October 3-9, 2023.

If the entire process runs smoothly, it is estimated that the Company's initial listing of shares on the IDX can be carried out on October 11.

"The funds obtained from the IPO will be used for the development of the Company's business in the form of purchasing heavy equipment and also the Company's working capital," said Finance Director of Koka Indonesia Michael Albert when met after a press conference in Jakarta, Thursday, September 21.

Michael said 13.55 percent would be used for capital expenditures, such as the procurement of new heavy equipment.

"Among them we will add a Wheel Loader of three units, Truck Crane with two units, and Excavator with two units," he said.

The implementation of the transaction is targeted to be realized no later than the fourth quarter of 2023.

"We determine PT Rimpac Daya Mitra as the third party to have business activities as a heavy equipment distributor as our vendor," he said.

Then, as much as 86.45 percent will be used for working capital, including payment of raw construction materials, shipping logistics costs, operational costs at project sites, and administrative costs incurred in projects.

On the same occasion, President Director of Koka Gao Jing hopes that, with this IPO step, Koka can develop its business by increasing the company's business scale and efficiency.

So, it is hoped that KOKA can achieve its best performance and will be an added value for all stakeholders of the company.

"We will also implement Good Corporate Governance (GCG) as an open company," he concluded.