JAKARTA. PT Multisarana Intan Eduka Tbk (MSIE) is projected to raise IDR 36 billion of fresh funds after setting the price of initial public offering (IPO) to IDR 100 per share.

According to the prospectus, MSIE will utilise most of the IPO proceeds for land acquisition. Approximately 70% is for land acquisition, leaving the remaining 30% for working capital.

For the record, MSIE is indeed a real estate company engaged primarily in the land and building leasing business. The land expansion will take form through acquisition, long-term lease, and building construction.

The management of MSIE has yet to specify the lot location and the land acquisition partner. However, its strategic location target is in Central Java and Bali. “Other than being adjacent to the current business location, the potential in both areas is believed to be quite immense,” the management added.

Then, another 30% of the IPO proceeds will be allocated to working capital, specifically for regular operational costs. Then, this working capital also includes the cost of management, maintenance, and mild repair on properties currently owned by the company.

The number of shares issued by MSIE in IPO is 360 million units, which are equal to 24.66% of its total issued and paid-up capital post-IPO. The distribution of the shares will take place on August 9, 2023, while the listing on the stock exchange will follow on August 10, 2023. (KR/ZH)