JAKARTA. PT Sarana Mitra Luas Tbk (SMIL), a company providing forklift and other handling equipment rental services, has set an Initial Public Offering (IPO) share price of IDR 100 per share.

The offering price is right at the lower limit stated by the company at the time of the initial offer (bookbuilding). During the bookbuilding period, the company said that the IPO share price would be priced in the range of IDR 100 to IDR 200 per share.

With an offering price of IDR 100 per share, SMIL will only reap a maximum of IDR 175 billion in fresh funds. Previously, it was estimated that the company could raise fresh funds of up to IDR 350 billion from this corporate action if it set an IPO share price of IDR 200 per share.

The public offering of SMIL shares will take place from Monday (8/5) today to 10 May 2023. The electronic distribution of shares is scheduled to take place on 11 May 2023 and the initial public offering on 12 May 2023.

On the same occasion, SMIL also issued 2.45 billion series I warrants. Later these series I warrants will be given free of charge as an incentive for new shareholders who buy the company's shares. Each holder of 5 new shares has the right to obtain 7 series I warrants, where each 1 warrant will give the holder the right to buy 1 new share of the company from the portfolio.

In the published prospectus, SMIL plans to use around 43.99% of the IPO proceeds to purchase 250 units of forklifts and other handling equipment. Then around 14.70% will be used to purchase batteries for forklift operations, 3.48% to purchase supporting operational vehicles, and the remainder for the company's working capital. (KR/LM)