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Avia Avian paint secured IDR 5.77 trillion from IPO

08 December 2021 10:47

JAKARTA. PT Avia Avian Tbk (AVIA), a paint manufacturer under the name of Avian, has scored IDR 5.57 trillion of fresh funds from debuting in its Initial Public Offering of shares in Indonesia Stock Exchange earlier this December.

AVIA claimed that this corporate action has been the biggest IPO in Asia in the paint business and the third-biggest IPO in Indonesia since 2008. “This initial public offering is an essential milestone for employees, customers, suppliers, and all partners of Avian Brands,” Wijono Tanoko, President Director of AVIA, stated in the official statement today (8/12).

In the IPO conducted from December 2 to 6, 2021, the demand of AVIA’s shares exceeded the available units, indicating an oversubscription. The total incoming demands reportedly reached USD 771 million or IDR 10.95 trillion.

It is worth mentioning that the total offered shares in AVIA’s IPO amounted to 11.78 billion shares. Then, 52.7% of the issued shares were fresh, new shares, while the remaining portion of 47.3% consisted of the shares offered by existing shareholders. After the IPO, the Tanokos still claims the majority of the shares, owning 74.7% of total shares.

AVIA would allocate the proceeds of this IPO to boost its profitability in Indonesia. Several strategies include distribution expansion from tier-1 cities to tier-4, investments in innovative products, and an establishment of a new production facility in Cirebon. (KR/ZH)

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