Indonesian commercial electric vehicles supplier PT VKTR Teknologi Mobilitas Tbk has set its initial public offering (IPO) price at 100 rupiah apiece, which means the company could raise as much as 875 billion rupiah ($58.8 million) through the share sale.
VKTR, which is backed by Indonesian conglomerate Bakrie Group, will issue 8.75 billion new shares, or 20% of the total shares in the IPO. The price is in the lower range of 100 rupiah and 130 rupiah apiece, according to the prospectus filed by the company on Tuesday.
DealStreetAsia had earlier reported about VKTR’s potential plans to raise $45 million in its IPO on the Indonesian Stock Exchange (IDX).
The book-building period for the issue will run from May 26-31, while the public offering is scheduled for June 13-16. The listing date has been fixed for June 19, 2023.
PT Samuel Sekuritas Indonesia, PT Ciptadana Sekuritas Asia, and PT Trimegah Sekuritas Indonesia Tbk are the underwriters to the IPO.
The company will use a major portion of the funding proceeds to meet capital expenditure, while the remaining will be utilised for its subsidiary PT Bakrie Autoparts and to pay off debt.
Following the IPO, the ownership of PT Bakrie Brothers Tbk in the company will reduce from 57% to 45.55%. The ownership of PT Bakrie Metal Industries will fall to 22.05% from 27.56% and that of PT Kuantum Akselerasi Indonesia to 12.4% from 15.5%.
VKTR had booked a profit of 75.85 billion rupiah in the year ended Dec 31, 2022, compared with 55.22 billion rupiah in the same period of 2021. The company’s revenue went up to 1 trillion rupiah in Jan-Dec 2022 from 679 billion rupiah in the same period of 2021.