JAKARTA (Yosefardi) – PT Industri Jamu Dan Farmasi Sido Muncul Tbk, one of Indonesia’s largest herbal medicine makers, has set its IPO price for 1.5 billion shares at Rp580 per share, to raise total proceeds of Rp870 billion.
The IPO proceeds will be used for working capital (56%), for investment (42%), and IT development (the rest).
The company plans to increase its raw material supply and its unit PT Muncul Mekar. It also plans to acquire land and build plant located in Semarang, to support the production of its product Tolak Angin. The construction of new plant is targeted to complete by 2016, to boost capacity of Tolak Angin production by 100% in 2015.
The company will also increase investment in its unit PT Semarang Herbal Indo Plant, including purchasing new machines, to boost its production capacity by up to 300%.
Curently Sido Muncul focuses its business in Java, Sumatra, and Kalimantan. The company intends to expand into eastern part of Indonesia such as Makassar, Papua, Maluku, and East Nusa Tenggara (NTT).
Semarang-based SidoMuncul, established in 1951, operates a 29-hectare factory in the Central Java capital producing herbal products such as Jamu Tolak Angin, a traditional cold medicine, and Kuku Bima Ener-G, an energy drink, according to its website.
Sido Muncul’s main competitors are PT Bintang Toejoe and PT Deltomed Laboratories. As people’s life is now changing into ‘back to nature’, to boost herbal medicine industry. Jamu products’ consumption in Indonesia grows by 35% from 6,246.9 tons in 2008 to 20,818.6 tons in 2012.
Sido Muncul booked net profit of Rp207.99 billion in first 7 months of this year on sales of Rp1.39 trillion. In the same period of 2012, it booked net profit of Rp190.95 billion and sales of Rp1.34 trillion. Its assets totaled Rp1.91 trillion while liability amounted Rp326.19 billion.