PT Transcoal Pacific Tbk will conduct an initial public offering of shares or an initial public offering with an initial offering price of Rp110-Rp150 per share.
Transcoal Pacific President Director Richard Talumewo explained that the company plans to release 1,500,000,000 new shares or 27.27% of the total paid-up capital after the public offering. The offered initial public offering price is in the range of Rp110 to Rp150.
In the corporate action, Richard said targeting funds of about Rp110 billion to Rp150 billion. The plan, the fund will be used as a working capital company.
Currently, he continued, the company uses a lot of chartered vessels that undermine working capital. The current transportation fleet composition is dominated by third party ships by 69%.
“Therefore we need funds from the IPO to increase working capital in line with the increase in transportation volume,” he said in Jakarta, Wednesday (30/5) quoted by Bisnis.com as saying.
Richard explained that the company currently has three main business lines, namely coal hauling, long haul coal transportation, and industrial oil or crude palm oil using oil barge. Meanwhile, the fleet of owned vessels are 13 tugs, 13 barges, and 1 floating terminal station.
It claims the business potential of marine transportation and logistics services is wide open. Moreover, coal reserves and other commodities are still abundant, providing opportunities for the transport business.
He said the Government has also provided convenience and opportunity for sea transport business through Regulation of the Minister of Trade No. 82 of 2017. The beleid requires the use of national vessels for the transport of coal exports.
Meanwhile, Finance Director of Transcoal Pacific Amril said it will use the book of financial performance as of December 31, 2017 for the IPO plan. It claimed the company managed to record positive financial performance in that period.
In detail, Amril said the company pocketed revenue of Rp650, 38 billion in 2017. The achievement is up 15% from the previous period Rp565, 13 billion.
After the IPO, he said the company will distribute dividends amounting to 20% of net profit if the amount pocketed reached Rp100 billion. Meanwhile, Transcoal Pacific is committed to pay dividends with a 25% ratio if the profit is above Rp100 billion.
“The dividend payment will be done starting 2019 based on the financial performance of 2017 by paying attention to the decision of the general meeting of shareholders,”
In the corporate action, Transcoal Pacific appointed PT Investindo Nusantara Sekuritas and PT Jasa Utama Capital Sekuritas as underwriters. It is estimated that the company will conduct the initial listing of shares on the Indonesia Stock Exchange on July 2, 2018.
Director of Investment Banking Investindo Nusantara Sekuritas Anshy Sutisna explained that it has pre-marketing for Transcoal Pacific IPO. It claims the move gets a positive response from potential investors.
“We already do pre marketing and to some who are interested already allocated,” he explained.
Anshy said that the initial offering price of Transcoal Pacific shares has a price earning ratio of 5.5 times to 7.7 times. That is, the company’s stock valuation is still in the range of industrial PER currently in the range of 5 times to 8 times. (ac)