IPO of Duta Intidaya on the Indonesia Stock Exchange
Duta Intidaya, an Indonesia-based health and beauty products retailer, targets to collect up to IDR 90.8 billion (approx. USD $6.7 million) from an initial public offering (IPO) on the Indonesia Stock Exchange that is planned for June 2016. This would make Duta Intidaya, the operator of the Watsons stores in Indonesia, the fifth company to go public in Indonesia this year. Lilis Mulyawati, Director of Duta Intidaya, said the book building process for the company's IPO is conducted between 31 May and 6 June 2016, while the offering period is set for 17-21 June. Listing on the IDX is scheduled for 28 June 2016.
Duta Intidaya plans to release 478 million shares in the IPO, equivalent to 23 percent of its paid up capital. Mulyawati said the company will offer its shares in the price range of IDR 110 - 190 a piece to the public (Trimegah Securities has been appointed as lead underwriter for the IPO). Around 35 percent of proceeds from the IPO will be used by the company to pay its debts. The remainder is to be used to establish new Watsons Indonesia branches in various regions. Over the next five years, the company targets to add up to 20 new stores to its portfolio.
Hong Kong-based Watsons Personal Care Stores (Watsons) is the largest health care and beauty care chain store in Asia. According to its website it operates more than 5,200 stores in 12 Asian and European markets. The stores in Indonesia are operated by Duta Intidaya, a company that was founded in 2005. Duta Intidaya currently operates 47 Watsons branches in Jakarta, Banten, West Java, and Central Java with a total floor size of 8,900 m2 and supported by 2,160 m2 of storehouse capacity.
Over the past three years Duta Intidaya experienced an average of 56.5 percent compound annual growth rate (CAGR) from 12 stores in 2012 to 46 stores in 2015. The company's net sales grew 18 percent (y/y) to IDR 192 billion (approx. USD $14.1 million) in 2015, surpassing the average growth in Indonesia's health care and beauty products industry that was recorded at 10.2 percent (y/y) in 2015. This year, the company targets a 18.2 percent (y/y) growth in revenue to IDR 227 billion.
Stephanus Turangan, President Director at Trimegah Securities, is optimistic that investors are interested in a stake in Duta Intidaya, particularly as the shares can be considered 'cheap' (compared to other retail shares). The price-to-earnings ratio (PER) in Indonesia's retail industry is currently between 27 and 40 times. He could not mention the PER of Duta Intidaya because the company has not recorded net profit as it is engaged in investment to expand its business across Java.
Investors who want to purchase a stake in Duta Intidaya should be focused on the long-term. As the company is currently posting a net loss it will not entice the short-term investor. Moreover, given Watsons Indonesia targets the middle-up and high class customers in Indonesian society, it will not see a major boost amid the coming Ramadan and Idul Fitri celebrations (these Islamic celebrations always boost consumption in Indonesia, particularly among the middle to lower classes). Overall, consumption in Indonesia in fact remained subdued in the first quarter of 2016. This should be a drag on Duta Intidaya's sales.
Initial Public Offerings (IPOs) on the Indonesia Stock Exchange in 2016
Besides Duta Intidaya, several other Indonesian companies are preparing their IPO on the Indonesia Stock Exchange: shipping company Sillo Maritime Perdana, property developer Graha Andrasentra Propertindo, independent power producers Megapower Makmur and Cikarang Listrindo, telecommunication contractor Protech Mitra Perkasa, and financial institution Capital Financial Indonesia. In total, the Indonesia Stock Exchange targets to welcome 35 new companies on the exchange in 2016.
This target may be overly ambitious given only four companies have conducted an IPO so far this year: Bank Artos Indonesia, Mitra Pemuda, Mahaka Radio Integra, and Bank Ganesha.
Last Update: 29 Mar 2021
IPOs on the Indonesia Stock Exchange up to 31 May 2016
| Company | P: 29 Mar 2021 | P: 28 Mar 2021 | Gain/Loss | P/E ttm | Yield % | Gain/Loss YTD |
| Bank Artos IndonesiaARTO | 10,050 | 9,900 | 1.52% | N/A | 0.00% | 79.46% |
| Mitra PemudaMTRA | 244 | 244 | 0.00% | N/A | 0.00% | 0.00% |
| Mahaka Radio Integra Tbk.MARI | 256 | 254 | 0.79% | N/A | 0.00% | 187.64% |
| Bank Ganesha Tbk.BGTG | 146 | 156 | -6.41% | N/A | 0.00% | 102.78% |
| Combined Total | 10,696 | 10,554 | 1.35% | 78.12% |
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available
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