Officially IPO, FOLK Group Receives IDR 57 Billion Fund

Photo: Doc. Indonesia Stock Exchange

JAKARTA - The multi-sector holding company PT Multi Garam Utama Tbk (FOLK) or FOLK Group officially listed its initial public offering (IPO) on the Indonesia Stock Exchange (IDX), Jakarta, Monday, August 7, by obtaining fresh funds of IDR 57 billion.

The FOLK Group company is currently operating in 2 main industries, namely New Media and Consumer. Through several of its subsidiaries, FOLK Group has three main pillars that are the core foundation of the FOLK Group ecosystem. The first pillar is New Media Commerce, which is a new content creator-based media (content creator) which is distributed through digital platforms, one of which is social media.

FOLK Group currently reaches its audience through 3 media segments, namely Education - Finfolk, Sports & Entertainment - R66 Media, and Lifestyle & Culture - USS Networks. Then, the second pillar is Omni-Channel Retail Brands consisting of Amazara, SYCA and Dr Soap where all three have received awards as Top Performance Direct-To Consumer Brand on the Top 2 Marketplace in Indonesia. The official store of Dr. Soap itself has been standing at Senayan City Mall since June 2022.

The last pillar is Intellectual Property (IP) & Community where FOLK Group and its subsidiaries have built and have several Original IPs as competitive advantages, especially in the Creative Economy ecosystem, ranging from Lifestyle, Fashion, Sports, to Events such as Finfolk Conference, Genesis Dogma, and others. The entire IP from FOLK is also supported by a very strong community base.

The combination of the entire FOLK ecosystem has reached more than 100 million Indonesians with demographics aged 18-45 years from urban to sub-urban. FOLK issued 570 million new shares or the equivalent of 14.4 percent of the company's issued and paid-up capital, with an offering price of IDR 100 per share.

Along with the IPO, FOLK will also issue 285 million Series I Warrants which can become new shares, with a nominal value of Rp200/gebar. Regarding the use of IPO proceeds, the company will use around 22.69 percent to deposit capital to PT Finfolk Media Nusantara (FMN).

Then around 18.85 percent will be used by the company for payment of contractor services, renovation of office buildings, construction of studios, meeting rooms, and also the purchase of equipment.

Then around 17.65 percent of the IPO proceeds will be used by the company to purchase shares of PT Untung Selalu Sukses (USS). Finally, 12.50 percent will be loaned to PT Drsoap Global Indonesia (DGI), 12.00 percent will be loaned to PT Amazara Indonesia Mudakarya (AIM). A total of 6.60 percent will be loaned to PT Syca Kreasi Indonesia (SKI).

Bong Chandra, FOLK Group's President Commissioner, said FOLK Group has 5 stairs in a massive 5-year Roadmap, the IPO is only the first ladder.

"Armed with a young and innovative management team and Co-Founder with a good track record, we believe FOLK Group will become a catalyst in Indonesia's creative industry," said Bong.

From January to July 2023, the FOLK Group ecosystem has sold more than 149 thousand products and during the FOLK Group standing it has served more than 500 thousand total unique customers. FOLK Group also has a total of 20+ Intellectual Properties & Brands. As of July 2023, several channel media outlets in the FOLK Group ecosystem have more than 352 million total views.

This achievement is also supported by solid financial performance where in the last 4 years, the company has managed to book a 224 percent revenue CAGR and a 248 percent net profit CAGR from 2019-2022. The Company's revenue is IDR 40.24 billion with a net profit of IDR 5.20 billion in 2022.

In terms of liabilities, the Company is arguably almost debt free with a very low level of Debt to Equity (DER) of 0.06x as of the end of December 2022.

The low rate of DER and Net Profit Margin (NPM) 12.93 percent in 2022 FOLK Group show that the company has a profitable business with fairly high growth. FOLK Group is also supported by strong cash flows and allows to make inorganic investments by means of acquisition, organic business development, and sustainable dividend distribution.

Next, FOLK Group has several strategic plans in the future to develop the company's business activities.

FOLK Group was born from the spirit of creation and collaboration of its founders. We are currently entering a new chapter, namely becoming a public company. The next step is focus on expanding the FOLK Group ecosystem in the new media and consumer sector in an organic and inorganic manner. Our dream is still very big and this is just the beginning, "said Danny Sutradewa, as the President Director of the FOLK Group.