JAKARTA – PT Sunindo Pratama Tbk (SUNI) will acquire land and buildings of 50,793 m2 in Batam, Riau Islands, to boost the production capacity for Oil Country Tubular Goods (OCTG) Tubing.

Andy Gunawan, Director of SUNI, claimed that the property was bought through its subsidiary, PT Rainbow Tubulars Manufacture (RTM), in order to increase the production capacity of OCTG. ”It will reinforce the position of the company within the OCTG Tubing industry, as well as increasing the market share and the contribution of OCTG sales to the revenue,” he explained in the information disclosure quoted Monday (13/3).

RTM manages to acquire said land and building from PT Mencast Offshore and Marine (MOM) for IDR 56 billion. This newly bought asset is located in Brigjen Katamso Street KM 18, Tanjung Uncang, Batu Aji, Batam. The source of the money for these assets came from the bank loans.

SUNI made its debut in January 2023 by issuing 600 million shares for IDR 300 each. The proceeds from its initial public offering (IPO) clocked up to IDR 180 billion, IDR 70.65 billion of which is utilised to increase its portion in RTM by 39.96%, while another IDR 75 billion is spent on paying back RTM’s outstanding debts to suppliers. Lastly, another IDR 30.38 billion is used to enhance SUNI’s working capital. (LK/ZH)