Trimegah Bangun Persada to Raise Rp 9.7 Trillion from IPO
Trimegah Bangun Persada (TPP) has announced plans to raise funds worth a whopping Rp 9.7 trillion in its upcoming initial public offering (IPO) on the Indonesia Stock Exchange. This will be the largest IPO in Indonesia’s history and is expected to take place in early 2021.
Background Information
The retailer has been operating in the Indonesian market since 2001, selling construction materials and building supplies. Since then, TPP has grown to become the second-largest building material retailer in the country. TPP currently has more than 250 stores throughout Indonesia.
Details of the IPO
The funds raised from the IPO will be used to finance TPP’s expansion across Indonesia and for its ongoing business needs. TPP is offering 8.3 billion new shares, which are expected to be priced between Rp 1,150 and Rp 1,350 per share.
Potential Benefits
The IPO could prove to be a major benefit for investors, providing them with access to one of Indonesia’s most successful construction companies. Additionally, by listing on the stock exchange, TPP will gain access to public capital markets. This will provide the company with more reliable and longer-term financing options.
Key Takeaways
- TPP is planning to raise Rp 9.7 trillion in its upcoming initial public offering (IPO).
- This will be the largest IPO ever held on the Indonesia Stock Exchange.
- The funds raised from the IPO will be used to finance TPP’s expansion and ongoing business needs.
- The IPO provides investors with an opportunity to invest in one of Indonesia’s most successful companies.
Trimegah Bangun Persada, a Jakarta-based construction company, is set to launch an initial public offering (IPO) on the Indonesian Stock Exchange (IDX) to raise around Rp 9.7 trillion (US$679 million).
The IPO is expected to be held in the first half of November and is set to be the biggest on the IDX in 2019. According to the IDX, Trimegah Bangun Persada will issue as many as 761.8 million new shares, or 42.30 percent of the company’s total issued shares. The company is targeting to raise Rp 8.5 trillion from the issuance of new shares and the addition of existing shares will include around Rp 1.15 trillion.
The majority of the proceeds from the IPO will be used to finance the company’s capital expansion program for the construction of new projects. The IPO is expected to strengthen the company’s position and competitive edge as one of the leading construction companies in Indonesia.
Trimegah Bangun Persada is one of the few companies that have successfully accessed the capital market to finance their growth and development plans. It is expected that the successful completion of the IPO will provide the company with the necessary financial muscle to expand its business operations and expand its construction projects.
The set market price for the IPO of the Trimegah Bangun Persada is Rp 2,100 per share and the external underwriter for this offering is PT Northstar Pacific Selaras. The IPO is expected to attract both domestic and international investors who are seeking diversification of their portfolios in the Indonesian stock market.
