Buyung Poetra Sembada's IPO on the Indonesia Stock Exchange
Indonesian rice distributor Buyung Poetra Sembada targets to see a 25 percent year-on-year (y/y) growth of sales and net profit in 2017, supported by rising sales of its own brands as well as private labels. The company also targets to collect up to IDR 280 billion (approx. USD $21 million) through an initial public offering (IPO) on the Indonesia Stock Exchange in June 2017. Buyung Poetra Sembada will offer 700 million new shares, equivalent to nearly 30 percent of its enlarged capital, to the public.
Sukarto Bujung, President Director of Buyung Poetra Sembada, said the company posted an average sales growth of 30 percent (y/y) over the past three years.
Buyung Poetra Sembada has five brands (Topi Koki, Rumah Limas, Belida, BPS, and Hoki), all are packaged (premium) rice products. The company also delivers rice for supermarkets' and convenience stores' private labels (for example for Hypermart, Giant, Lotte Mart, Superindo, Tip Top, Naga Swalayan, and Yogya).
Regarding its sales composition, sales of own brands contribute 75.92 percent to Buyung Poetra Sembada's total earnings, while the remaining 23.63 percent stems from sales of private label products.
Funds generated from the IPO will be used for business expansion. Buyung Poetra Sembada's book building period is scheduled for 24 May - 6 June 2017. Shares will be offered to investors in the 16 - 19 June period (at the price range of IDR 300 - 400 a piece). Listing on the Indonesia Stock Exchange is scheduled for 23 June. Bahana Securities, RHB Sekuritas Indonesia, and Trimegah Sekuritas Indonesia were appointed as underwriters for the IPO.
Buyung Poetra Sembada owns two rice packaging factories. One in Pasar Induk Cipinang (East Jakarta) that has a production capacity of 43,200 tons per year, and one in Subang (West Java) that has a production capacity of 259,200 tons per year. The company plans to establish a new factory in the eastern part of Java (close to a rice production center). It will require about IDR 100 billion to establish this factory (that will be financed through the company's internal cash reserves).
Sales of Buyung Poetra Sembada:
| 2014 | 2015 | 2016 | |
| Net Sales (in IDR billion) |
518.3 | 658.3 | 1,140.0 |
Source: Bisnis Indonesia