GTS International Ready For IPO, Targets To Raise Funds Of Up To IDR 429 Billion

President Director of PT GTS Internasional Tbk Kemal Imam Santoso. (Photo: Doc. Antara)

JAKARTA - A company engaged in the distribution of natural and manufactured gas PT GTS Internasional Tbk is preparing to list its shares on the Indonesia Stock Exchange (IDX) by conducting an Initial Public Offering (IPO). The target of the funds that GTS International wants to raise is up to IDR 429 billion

President Director of PT GTS Internasional Tbk Kemal Imam Santoso said that in line with the government's policy on gasification which plays a major role in electricity as a power plant, his party is in the stage of building an LNG supply chain ecosystem by acquiring affiliated companies that will provide synergies for the company's business continuity.

The company plans to build a permanent Floating Storage Regasification Unit (FRSU) for North Sulawesi. The construction of the FRSU is to meet the electricity needs in North Sulawesi which provides significant savings to the State Electricity Company (PLN) of North Sulawesi.

"To fund the acquisition, the company plans to raise funds between IDR 286 billion and IDR 429 billion through an IPO by selling 2.86 billion new shares", Kemal said in a virtual public expose, Thursday, August 19.

The shares with a nominal value of IDR 50 per share are equivalent to 17.6 percent of the total issued and fully paid-up capital of the company after the IPO. The initial offering price is in the range of IDR 100 per share to IDR 150 per share.

The company also intends to list all shares on behalf of shareholders before the company goes public with a total of 13.42 billion shares. So the total shares listed by the company reached 16.28 billion shares.

After deducting the issuance costs, the proceeds from the sale of the shares will be used, among others, around 64 percent or equivalent to USD 19.2 million for a loan to PT Anoa Sulawesi Regas (Anoa), with an estimated interest rate of 7 percent per year with a term of the loan period of eight years and a grace period of two years.

The loan will be used by Anoa to build a permanent FRSU, which is planned to start in the fourth quarter of 2021. If the funds have been repaid to the company, the company will use the funds for future business development including but not limited to working capital and capital expenditures.

Meanwhile, around 20 percent or USD 6 million will be used for the company's working capital such as the company's operations which include, among others, docking reserves, building a war room accounting and financial system, and shipping monitoring online system.

Then, about 16 percent or USD 4.8 million for capital investment to Anoa. With the participation of these funds, it is hoped that it will strengthen the capital structure and working capital in Anoa, so that it can contribute to the consolidation and stability of the company's income for the next 15 years.

The estimated initial offering period of the company's shares is scheduled to take place from August 19 to August 25, 2021, with an estimated effective date of August 31, 2021, so that the estimated public offering will take place from September 2 to 6, 2021 and the allotment date on September 6. Meanwhile, the estimation of share allotment and electronic distribution is on September 7, then the initial listing or listing is estimated on September 8, 2021.

Acting as underwriters for the company's share issuance are RHB Sekuritas Indonesia, PT Mirae Sekuritas Indonesia, and PT Reliance Sekuritas Indonesia.

PT GTS Internasional Tbk is a company engaged in the distribution of natural and artificial gas, domestic and foreign sea transportation for special goods, and holding company activities. The company was founded in 2013 as a business embryo initiated by PT Humpuss Intermoda Transport Tbk (HITS) when it established the liquefied natural gas (LNG) transportation division, which initially operated only 1 LNG Vessel with a capacity of 136.000 m2. Along with the growing demand for the number of freight cargo, HITS continues to increase its carrying capacity to a total of 328.500 m2.

In an effort to support more simultaneous business growth, HITS decided to form a separate entity, namely GTSI, which focuses on developing logistics in the field of liquefied natural gas resources for potential domestic and international markets. So that GTSI is in the HITS group, precisely under the control of PT Hateka Trans Internasional (HTI) which controls 99.96 percent of GTSI's shares and the remaining 0.04 percent is owned by KKB.