A subsidiary of Erajaya, Sinar Eka Selaras (ERAL), is projected to obtain US$28.37 million by releasing up to 1.03 billion shares to the public.
Heaptalk, Jakarta — PT Sinar Eka Selaras (ERAL), an end-to-end retail company of computers, electronic equipment, and clothing, carried out an initial public offering (IPO) by releasing up to 1.03 billion shares to the public with a nominal value of Rp100 per share.
This amount is equivalent to 20% of the issued and fully paid capital after the IPO. The company appointed PT Mirae Asset Sekuritas Indonesia and PT BNI Sekuritas as underwriters for the issuance.
During the book-building period of July 14-26, 2023, the initial offering price ranges from Rp370 to Rp410 per share. From this IPO, the subsidiary of Erajaya Swasembada is projected to obtain fresh funds of Rp425.38 billion or approximately US$28.37 million (US$1 equals Rp14,993). Further, ERAL’s public offering is scheduled for August 2-4, 2023, and listed on the Indonesia Stock Exchange on August 8, 2023.
According to the President Director of Sinar Eka Selaras Djohan Susanto, one of the objectives of this IPO is to create business expansion in Indonesia, including outlets, products, and brands. “We aim to have more than 500 stores in the next five years to make Erajaya Active Lifestyle the leading active lifestyle company in Indonesia,” Djohan said as quoted by Kontan (07/17).
Established in 2009, Sinar Eka Selaras currently has 56 distribution centers, more than 60 retail outlets, and more than 570 resellers. The retail outlets include Urban Republic, Garmin Brand Store, DJI Experiences Store, JD Sports, ASICS, and others.
Allocated for new outlet construction and old outlet renovation
The IPO proceeds will be allocated for three things, spanning lending to subsidiaries (37%), providing capital to subsidiaries (13.75%), and the Company’s working capital needs (49.25%) based on the prospectus.
In more detail, the subsidiary companies that will receive loan allocations are PT Mitra Internasional Indonesia (93%) and PT Era Aktif Indonesia (7%). PT Mitra Internasional Indonesia will leverage it for working capital and capital expenditures, including the development of around 50 new outlets and the renovation of 10 old outlets in Java, Sumatra, Kalimantan, Sulawesi, and Bali. PT Era Aktif Indonesia will utilize the loan for working capital and capital expenditures, including the construction of 4 new outlets and the renovation of 2 old outlets in Java and Bali.
Meanwhile, the capital provision will be given to PT Era Gaya Indonesia (35%) and PT Master Selam Nusantara (65%). PT Era Gaya Indonesia will utilize the capital injection for working capital and capital expenditures, including the development of 5 new outlets in Java and Sulawesi. PT Master Selam Nusantara will leverage this additional capital for working capital and capital expenditure, including the development of 2 new outlets in Java and Bali.
