Become Emiten To 899, Kian Santang Muliatama Supports The Continuation Of Jargas Development

RGAS IPO Press Conference (Photo: Aris Nurjani/VOI)

PT Kian Santang Muliatama Tbk (RGAS) officially listed its initial shares on the Indonesia Stock Exchange (IDX) by releasing a maximum of 334.2 million new shares. Based on the fixed allocation or definite allotment, RGAS shares experienced a total oversubscribed or oversubscribed up to 20 times.

Meanwhile, RGAS became the 899th issuer on the IDX which officially recorded its initial shares through an initial public offering (IPO) by releasing a maximum of 334.2 million new shares with a nominal value of Rp40 per share or 22.9 percent of the issued and fully paid capital.

The company has made initial offers in the price range of IDR 115 to IDR 122 per share from 16-18 October 2023. So that the value of this IPO reaches IDR 38.433 billion to IDR 40.772 billion.

President Director of PT Kian Santang Muliatama Tbk Edy Nurhamid Amin explained that the corporate action this time was an important milestone for the company in improving performance and maintaining company governance.

Edy hopes that in the future it can be much better. This is also reflected in the response and enthusiasm of investors to the company's very positive shares.

"Alhamdulillah, today, Wednesday, November 8, 2023, PT Kian Santang Muliatama Tbk has created a new history by recording its initial shares on the Indonesia Stock Exchange (IDX). And based on public offering data received, we have experienced oversubscribe or oversubscribed as much as 20x," he said at the Indonesia Stock Exchange Building, Wednesday, November 8.

Edy added, after registering its initial shares on the Indonesia Stock Exchange, it will be more expansive in helping the government to carry out the construction of a gas network in Indonesia. This is because the government's target to build a gas network (Jargas) is still very small.

"We want to contribute to helping the government in realizing the gas network development target (Jargas). Moreover, we already have a variety of products that can be used by the government for the construction of Jargas," he added.

On the other hand, Edy said that he would always prioritize the use of domestic products for implementation in every project handling that had been carried out so far.

In addition, the Company has implemented an accredited quality management policy from international institutions.

"Some of the Company's superior products have local content, TKDN is more than 92% and is among the highest compared to competitors with similar product categories", he concluded.

In this corporate action, RGAS management appointed Erdikha Elit Sekuritas as the underwriter for the issuance of securities. In addition, the company provided a free 200.52 million series I warrants to investors listed during the allotment period, namely on November 3, 2023.

In addition, RGAS also managed to enter the category of Sharia Index on the Indonesia Stock Exchange.

Meanwhile, every new 5-share holder will receive 3 series I warrants, every 1 waran holder can redeem it to 1 company's shares with an exercise price of IDR 210 per strand starting May 7 November 6, 2024.

Edy explained that the company will use IDR 14.6 billion in proceeds from the IPO for the purchase of 99 percent of PT Kian Santang's shares, one of the company's founders' shareholders.

Furthermore, around Rp6.3 billion was to buy 99 percent of PT Karya Instrumindo's shares. Next, Rp9.63 billion to buy Ergas and Kians brands. While the rest, for the company's working capital, such as salaries to purchase goods.