IPO of Trafoindo Prima Perkasa on the Indonesia Stock Exchange
Indonesian electrical transformer manufacturer Trafoindo Prima Perkasa is optimistic about its future business given Indonesia's accelerating economic growth, while the government is committed to its 35,000 MW power program. The company seeks to raise up to IDR 480 billion (approx. USD $36.1 million) from an initial public offering (IPO) on the Indonesia Stock Exchange in June 2017. It plans to offer 1.2 billion shares at a price range between IDR 320 - 400 a piece (with a price-to-earnings ratio of 9 - 12 times). Bahana Sekuritas acts as underwriter.
Trafoindo Prima Perkasa, owned by Maximilian Widjaja, was established in 1982 with a main focus on the manufacturing of medium voltage oil-immersed distribution transformers. Later it expanded and diversified its manufacturing activities to include other medium voltage electrical apparatus. It has evolved into one of the largest manufacturers of transformers in Indonesia.
Currently, the company owns four factories in Banten (on the western tip of Java) that produces a range of transformers to support electricity networks. Trafoindo Prima Perkasa's most well-known products are sold under the Trafoindo and Proteksi Goodrun brands. Most of its earnings stem from sales to Perusahaan Listrik Negara (PLN), Schneider Indonesia, Ega Tekelindo Prima, Quadro Indonesia Perkasa, and Alstom Grid.
About 65 percent of funds generated through the IPO will be allocated to business expansion (including for its subsidiary Powerindo Prima Perkasa), particularly to expand its production line and build a new warehouse for raw materials in Tangerang (Banten). The remainder will be used as working capital, including debt repayment as well as to fund production.
Suryoni Limputra, President Director at Trafoindo Prima Perkasa, is convinced that demand for the company's products will continue to rise in line with Indonesia's expanding electricity network, supported by the government's 35,000 MW power plant construction program. Between 2016-2026 the installed capacity of Indonesia's total of power stations is expected to expand by 78,000 MW.
Read also: IPOs on the Indonesia Stock Exchange in 2017
Book-building for the IPO will be conducted between 22-30 May 2017, while Trafoindo Prima Perkasa will undertake a roadshow in Kuala Lumpur and Singapore between 25-26 May in an effort to promote its IPO to foreign investors.
Financial Statement Trafoindo Prima Perkasa:
| 2014 | 2015 | 2016 | |
| Net sales (in IDR trillion) |
1.07 | 1.13 | 1.34 |
| Profit (in IDR billion) |
245 | 141 | 145 |
| Total Assets (in IDR trillion) |
n.a. | n.a. | 1.53 |
Source: Bisnis Indonesia
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What happened to this company to have such a dip in profits between 2014 & 2015 FY?
Does the board of directors of this outfit have any clout with any important ministry here in Indonesia?