JAKARTA – PT Oscar Mitra Sukses Sejahtera Tbk (OLIV), a household furniture retailer, allocates IDR 35.28 billion to its working capital, originating from the proceeds of its initial public offering (IPO) last week (9-12/5). The company aimed to score IDR 40 billion by issuing 400 million shares.
In the short prospectus quoted Tuesday (17/5), it is revealed that the said budget will be realised for marketing activities, stock purchase, warehouse rent, and employees’ wages. Currently, the company is in the lookout for locations for OLIV’s new warehouses in several cities in respect to its domestic market expansion plan.
Meanwhile, the rest of the IPO proceeds, approximately 11.78% or IDR 4.72 billion, will be spent on operational expenditures, including renovating warehouses and acquiring trucks for its own fleet. However, these plans will be completed within the next two years.
OLIV is known to also have offered warrants of IDR 400 million (IDR 120 per warrant), equivalent to 26.67% of the issued and paid-up capital of the company. The target of this warrant issuance amounts to IDR 48 billion, will be available to be traded from November 14, 2022, to May 18, 2023, or six months after the IPO. (LK/ZH)