Hotel 88 Officially Listed On The Indonesia Stock Exchange

Lukman Nelam, President Director of PT Esta Multi Usaha Tbk. (Mery Handayani / VOI)

JAKARTA - PT Esta Multi Usaha Tbk (ESTA) officially listed its shares on the Indonesia Stock Exchange (IDX) with the issuer code ESTA. The owner of Hotel 88 is the 15th issuer this year.

In this corporate action, the company released 200 million new shares or 31.75 percent of the issued and fully paid-up capital.

"With a share nominal value of Rp 100 per share and an IPO price of Rp120 per share, the company has pocketed IPO funds of Rp 24 billion," said Lukman Nelam, President Director of ESTA at the Indonesia Stock Exchange Building (BEI), Jakarta, Monday 9 March.

The proceeds from the Public Offering after deducting the issuance costs, he said, will be used entirely to increase the paid-in capital in the subsidiary in order to expand the business.

"The details are about 31.46 percent for the construction of Hotel 88 in Gorontalo, as much as 19.42 percent is used as down payment for the purchase of vehicles to be leased. And the rest is for the company's working capital, ”he said.

PT Esta Multi Usaha Tbk is a company engaged in the hospitality, commercial property and vehicle rental sectors. ESTA currently owns Hotel 88 in Bekasi and several commercial properties spread across 18 locations throughout Indonesia.

During its first trading session, ESTA's shares shot up to 70 percent to the level of Rp 204 per share. The companies listed on the development board were automatically hit by Upper Auto Reject (ARA). This is because the ARA limit for shares with a price range of Rp. 50 to Rp. 200 is 35 percent. Meanwhile, during the initial trading of shares, the limit is doubled.

At the beginning of trading, the shares of the issuer with the main business in hospitality recorded a frequency of 13 times with a transaction volume of 2,825 shares. Meanwhile, the transaction value was IDR 56.59 million.

In conducting this initial public offering, ESTA collaborated with PT Jasa Utama Capital Sekuritas as the underwriter. Meanwhile, PT Erdikha Elit Sekuritas, PT Ekuator Swarna Sekuritas, PT Pacific Sekuritas Indonesia, PT Panin Sekuritas Tbk, and PT Profindo Sekuritas Indonesia acted as underwriters.