Hijab Company Where AA Gym Becomes Commissioner Wants IPO, Targeting IDR 221 Billion Funds

Abdullah Gymnastiar alias AA Gym. (Photo: Doc. Antara)

JAKARTA - The supervisor of the Daarut Tauhid Aa Gym Islamic Boarding School is listed as one of the Independent Commissioners of PT Bersama Zatta Jaya Tbk (ZATA). Meanwhile, ZATA will conduct an initial public offering (IPO) with a price range of IDR 100 to IDR 130 per share.

Citing the prospectus circulating on Monday, October 24, the company located in Bandung plans to issue 1.7 billion new shares with a nominal value of IDR 50. The number of shares issued is equivalent to 20.01 percent of the total issued and paid-up capital of ZATA after the IPO.

ZATA is targeting fresh funds of IDR 221 billion from this IPO action. The company will use the fresh funds for several things, namely as follows:

- Around 5 percent will be used by ZATA to pay all of the Company's financial obligations related to the Revolving Regular Fixed Loan Working Capital Credit facility (KMK-PTR) with PT Bank Raya Indonesia.

- Around 7 percent will be used by ZATA to pay all of the Company's financial obligations related to the Non-Revolving Fixed Installment Loan (KMK-PTA) with Bank Raya

- Approximately 17 percent of the capital will be paid to PT Bersama Dauky Mulya (PT BDM), which will then be used for:

i. Around 6 percent is for new store rentals to support PT BDM's sales activities.

ii. Around 4 percent for the renovation of 7 new shops that are rented in connection with the planned use of funds as mentioned in number 3 point i above.

iii. Around 7 percent is for working capital, including but not limited to purchasing raw materials and supporting materials as well as financing PT BDM's operational activities.

- Approximately 71 percent of the capital will be paid to PT Bersama Zatta Mulya (PT BZM), which will then be used for:

i. About 23 percent for new store rentals to support PT BZM's sales activities.

ii. Approximately 14 percent for the renovation of 26 new stores that are rented in connection with the planned use of funds as mentioned in number 4 point i above.

iii. The remainder is for working capital, including but not limited to purchasing raw materials and supporting materials as well as to finance PT BZM's operational activities.