PT Grand Kartech Tbk, engaged in manufacture and machine assembly industry, kicks of its initial public offering (IPO) of 320 million shares, or 28.38% of its total issued and paid-up shares capital, this morning.
Acting as underwriters are PT Andalan Artha Advisindo Sekuritas and PT Investindo Nusantara Sekuritas.
Book building started October 3, 2013 until October 17, 2013. The offering is set for October 30, 2013 to November 1, 2013. Listing at stock exchange is scheduled for November 8, 2013.
Grand Kartech is now controlled by PT Sutardja Dinamika Cipta.
The company will use IPO proceeds (Rp23.25 billion) for funding the establsihment of Kerawang 2 factory, targeted to complete the construction by this year end and will boost the production capacity by 51% to 444 tons per month from current 294 tons.
The rest of proceeds (Rp19.46 billion) will be used to fund the purchase of new machines from non-affiliated three parties. These new machines will be put in Kerawang 2 factory.
As of April 30, 2013 Garden Kartech’s liability totaled Rp184.16 billion while assets reached Rp268.26 billion. It booked net profit of Rp3.28 billion on revenues of Rp56.79 billion.
Grand Kartech produces pressure vessel, blasting plant, boiler, steel work, tank, fire tube overhaul & repair. It sells 45% of products to end users and the rest to EPC companies/contractors.
Garden Kartech has one subsidiary, PT Prima Jabar Steel.
PROSPECT ?
Prospect of industry in the country is promising along with the government’s concern on increasing gas supply for domestic consumption. Grand Kartech will benefit from this development in oil and gas sector, as it involves in developing facilities such as boiler, reactor, and storage tanks.
The company, while supplying equipments for processing oil and gas, also develops products for maintaining production facility of oil and gas of users and operators.
Grand Kartech also produces machines for painting body of car and motorcycle. Currently automotive industry in the country is growing fastly. The usage of boiler is also increasing along with the government’s project for 10,000 megawatts using power plants.