MPX Logistics Oversubscribes 41.5 Times While On The IDX

JAKARTA - PT MPX Logistics International Tbk (MPXL) achieved 41.5 times overorder or oversubscribe from the total public offering when it was first listed on the Indonesia Stock Exchange (IDX).

With this high public interest, MPX Logistics International President Director Wijaya Candera emphasized that MPXL is ready to support people and governments that need transportation and material needs in the context of developing advanced Indonesia infrastructure in 2045.

"It is hoped that both consumption trends and production capacity will continue to improve in line with the government's focus on developing the New Capital City (IKN) in East Kalimantan," Wijaya said at the MPXL Initial Listing Ceremony in Jakarta, as reported by Antara, Tuesday, May 9.

IKN development, according to him, will have a domino effect on infrastructure development to supporting facilities, plus the construction of supporting properties such as office buildings and housing. That way, automatically this will boost national cement consumption and have an impact on the company's business

Through the MPXL Initial Public Offering (IPO) which was held on May 3-5, 2023, there was great enthusiasm from public investors. In this IPO, MPXL released as many as 400 million new shares or as many as 20 percent of the total issued and fully paid capital, with an offering price of Rp108 per share so that the company managed to obtain funds of Rp43.2 billion.

The proceeds from this public offering action after deducting securities costs, around 12.76 percent will be used to pay down payments for the purchase of a truck fleet, where the company has ordered 10 units of vehicles to increase operating income.

Then, 36.99 percent for the purchase of land and buildings in Banten Province to support and facilitate the company's activities that will be used for vehicle pools.

The remaining 50.25 percent of the funds obtained will be used by the company for working capital. Meanwhile, from the implementation of Series I Warrants that have been issued by the company during the IPO, all of them will be used for working capital.

By conducting an IPO, Wijaya said that his party can be more flexible in partnering with domestic and foreign investors to develop MPXL in the future. "This is in accordance with our vision, namely to become the best national-scale transportation and logistics provider company with international standards," he said.

In this corporate action, the company appointed PT Panin Sekuritas Tbk (PANS) as the underwriter company for implementing securities (Lead Underwriter). Director of Panin Sekuritas Prama Nugraha said that overall the MPXL IPO process had gone well and in accordance with the plan.

"We consider the prospect of the transportation and material service industry which continues to carve out performance growth to be a good indication for MPXL to pass on the stock exchange market and continue to attract and provide great benefits to all investors," said Prama.