JAKARTA (Yosefardi) – PT Siloam International Hospitals Tbk, member of Lippo Group, downsizes its IPO shares to 156.1 million shares, or 13.5% of its total issued and paid capital, from initial plan of 162.75 million shares, representing 14% of total issued and paid-up shares capital.
The company announes today it will offer IPO shares at price of Rp9,000, substantial lower than initial range of Rp11200-14200, to raise total proceeds of Rp1.4 trillion, way below its initial target of between Rp1.8 trillion and Rp2.3 trillion.
The discounts followed substantial drop of property shares listed on Indonesia Stock Exchange (IDX) in recent weeks due to the downfall of rupiah and higher current account deficit.
Over allotment option for stabilization agent of the IPO has also been downsized from 23.25 million to 5.9 million shares only.
Accordingly, Siloam adjusts the use of proceeds to 39% for procurement of medical equipments, expansion of existing hospitals, and construction of new hospitals; 35% for repayment of funds received from Lippo Karawaci; and 26% for acquisition of hospitals, and or other healthcare companies.
The offering of IPO shares is scheduled for September 4-6, 2013 and listing at stock exchange is set for September 12, 2013.
Acting as underwriters for the IPO are PT Ciptadana Securities and PT Credit Suisse Securities Indonesia.
The company’s shareholders are PT Megapratama Karya Persada (69.9%), PT Kalimaya Pundi Bumi (10%), PT Sanfira Prima Utama (10%), PT Nilam Biru Bersinar (5%), PT Gloria Mulia (5%), and PT Maharama Sakti (0.1%).
Siloam International Hospital has total liability of Rp1.39 trillion, of which debt to non-business affiliated party accounted for Rp827.7 billion.
In first four months ended April, the company booked revenues of Rp789.5 billion, grew by 47.8% from the same period of last year. While cost of revenues increased 49.2% to Rp581.2 billion from previous Rp389.5 billion.