Global Teleshop to Go Public Next Month
Global Teleshop, a mobile phone retailer, aims to raise as much as Rp 127.8 billion ($14 million) from selling shares in an initial public offering early next month.
The Jakarta-based company plans to offer 11.11 million shares, or 10 percent of its enlarged capital, to investors. It set the IPO price at Rp 1,000 to Rp 1,150 apiece, according to Wientoro Prasetyo, the president director of Lautandhana Securindo, one of the underwriters for the sale.
The company will offer the shares on July 2-4, with a planned listing on the Indonesia Stock Exchange on July 10. Along with Lautandhana, Equator Securities was also hired to manage the sale.
Wientoro said 60 percent of the proceeds would be used for capital expenditure, while the remainder would pay debt to former shareholder Trilinium.
Evy Soenarjo, president director of Global Teleshop, said most of the spending would be used to buy stocks up front. The company typically purchases goods such as smartphones and other tablets before selling them to end users.
“With better investment, we can improve our marketing and more aggressively sell products with high demand in the market,” she said, naming products from Apple, such as the iPhone and iPad.
She said the company planned to open 60 to 100 new outlets this year. It now has 313 outlets in 40 Indonesian cities.
Januar Chandra, the company’s finance director, said Global Teleshop had set aside Rp 40 billion to Rp 50 billion as capital expenditure this year. The funds will be used to finance the opening of new outlets.
Januar said the company targeted net income at Rp 100 billion this year, compared to last year’s Rp 77.58 billion. Revenue has been forecast to grow 63 percent to Rp 3.1 trillion this year.
The company cut its IPO sales target to 10 percent from the original 20 percent due to market volatility.
Evy said that when the market improved and business required more capital, the company might increase its volume of shares in the market.
Global Teleshop was the second company to reduce its IPO size over uncertainty in global capital market. Toba Bara Sejahtra, a coal miner, reduced its IPO size earlier this month.