Release Of Shares To The Public, Distributor Of Retail Products And Owner Of K-Pop Licenses This Incar Fund Is IDR 126 Billion

Photo: Doc. Antara/MMI

JAKARTA - The retail product distributor and license holder of PT Multi Medika Internasional Tbk (MMI) is ready to take the floor on the Indonesia Stock Exchange (IDX) and raise funds from the capital market with an initial public offering (IPO).

The company will offer 600 million new shares or the equivalent of 25 percent of the issued and fully paid capital after the IPO. The initial offering price or bookbuilding is IDR 160-IDR 210 per share, so the company will reap fresh funds of IDR 126 billion

"The company will use the funds with details of around 65 percent for working capital in order to support the company's operational activities and business development," said MMI President Director Mengky Mangarek in a statement quoted by Antara, Wednesday, November 16.

Mengky detailed, for the working capital, about 30 percent of the funds will be used for operational costs, shipping costs, office costs, sales costs, additional employees and others. Meanwhile, around 70 percent for the purchase of merchandise, including masks, aromatherapy patches, and tissue from PT Multi One Plus and PT Tirta Dewi Jaya.

Meanwhile, about 35 percent of the IPO proceeds will be used to expand distribution centers and logistics facilities. The location of the company's license IP products is expected to be in the Bumi Serpong Damai area in 2023 and PIK2 in 2024.

At the same time, the company will also issue 300 million Series I Warrants accompanying new shares or 16.67 percent of the total issued and fully paid shares.

Series I warrants are given as incentives for new shareholders whose names are recorded in the shareholder list on the allotment date. Each holder of the company's two new shares is entitled to receive a Series I Warrant where each Series I Warrant gives the holder the right to buy a new share of the company issued in the portfolio, with a nominal value of IDR 25 and an exercise price of IDR 300.

The funds obtained by the Company from the implementation of Series I Warrants, will be used entirely for the company's working capital, which among other things is used for the opening of flagship stores and K-pop mini booths.

The majority ownership of PT Multi Medika Internasional before the public offering was PT Multi Inti Usa at 80 percent and will be 60 percent after the public offering.

The company has scheduled to carry out initial bids on 10-18 November 2022 and a schedule for indications of public offerings on 25-29 November 2022, estimated allotment dates on 29 November 2022, and an estimated date of listing or listing on the IDX on 1 December 2022.

PT Mirae Asset Sekuritas Indonesia acts as the underwriter for the issuance of shares of PT Multi Medika International.