SAP Express Use IPO Funds for Business Expansion

Posted on 2018-12-18 17:25:04

JAKARTA - Prospective issuers engaged in the goods shipping sector, PT Satria Antaran Prima Tbk. will use funds obtained from an initial public offering (IPO) for debt payments and expansion of the Corporate's network.

President Director of Satria Antaran Prima Budiyanto Darmastono revealed the Company will use 61.5% of IPO funds to pay the Company's loans, which is converted bond issued in 2016. The Company will pay the loan even though it will due in 2021.

“We will immediately pay it because we want an IPO. We see a huge market share of e-commerce, so that the IPO in 2021 will lose its momentum. Then we pay from the IPO funds, we will use the rest for development,” Budiyanto said in Jakarta, Tuesday (4/9).

The IDR 30 billion bond is currently held by GD Express Carirrier Bhd. With accelerated payments, the Company will issue a total of IDR 67.2 billion consisting of IDR 30 billion as the nominal value of the bonds, and IDR 37.2 billion as the premium redemption.

Despite the due date is in 2021, management insists on paying off bonds with a larger redemption fund and not converting mandatory convertible bonds (OWK) held by GD Express.

Meanwhile, the remaining IPO funds of 38.5% will be used by the Company for working capital. Until 2019, the Company plans to build 1,000 new outlets, most of which will be built on Java. At present, the Company already has 200 outlets spread throughout the province.

In 2018, the Company targets revenues of up to Rp250 billion, with many new customers from e-commerce such as JD.ID and Zalora. The Company also targets a higher revenue increase from the National Online Shopping Day (Harbolnas).

To date, the e-commerce segment contributes for only 11% of Satria Antaran Prima's revenue, so the opportunity for the growth is still big. The Company targets e-commerce contributions to reach 40 percent in 2019.