JAKARTA -- Herbal producer PT Industri Jamu dan Farmasi Sido Muncul Tbk offers Rp540-Rp660 per share in an initial public offering (IPO), planning to invest for capacity improvement.
The company, the first herbal producer to enter the stock market, expects to reap maximum Rp990 billion (US$99 million) by offering 1.5 billion shares equivalent to 10% paid in capital.
"About 56% of IPO proceeds will be used for working capital, 42% for investment and the remaining 2% for developing information technology system," said President Director Irwan Hidayat at public expose in Jakarta November 18, 2013.
He added that the capacity production of herbal factory will double by 2016 from the current 780 million sachets per year, as the company will invest in 10-hectare land for expanding its existing factory of Tolak Angin.
The appointed underwriters for this IPO are PT Kresna Graha Sekurindo Tbk and PT Mandiri Sekuritas. Sido Muncul is the producer of famous herbal brand Tolak Angin and energy drink Kuku Bima with market share 75% and 60% respectively (according to data Capricorn Indonesia Consult, September 2013).