Phapros to Conduct Initial Public Offering on Indonesia Stock Exchange
Phapros, subsidiary of state-owned Rajawali Nusantara Indonesia, intends to conduct an initial public offering (IPO) on the Indonesia Stock Exchange in 2015 by offering 10 to 20 percent of its enlarged capital to the public. Through this corporate action, Phapros, a pharmaceutical products manufacturer, aims to raise IDR 500 billion (USD $42.3 million) which will be used to finance the company's capital expenditure in the next two years. The company expects to grow on the implementation of Indonesia’s social security program per 1 January 2014.
Budi Ruseno, Finance Director at Phapros, said that the IPO will be conducted after Phapros has merged with its sister company Mitra Rajawali Banjaran. This merger is done in order to increase the company’s assets and equity. At end-2013, Phapros had IDR 643 billion (USD $54.5 million) in total assets and IDR 392 billion (USD $33.2 million) in equity. Assets and equity of Mitra Rajawali Banjaran have not been published.
Phapros plans to build hospitals in Cirebon (West Java) and Medan (North Sumatra) as well as a new factory in Semarang (Central Java). This factory, of which the groundbreaking is scheduled for late-2014, will require investments worth of IDR 350 billion (USD $29.7 million).
According to the official website of Phapros, the company has currently been producing 342 pharmaceutical products, 313 of which are own-developed.