JAKARTA - PT Lovina Industri Sukses (LIS), a subsidiary of PT Lovina Beach Brewery Tbk (STRK), will receive extra capital of IDR 64.58 billion prepared for working capital. Last week (3-6/10), STRK had conducted it's Initial Public Offering (IPO) and the issuance of series I warrants.

From the prospectus quoted today (11/10), the source of this extra working capital is the proceeds of the IPO of 1.18 billion shares of IDR 12 per share. Setting the exercise price of IDR 100 per share, IPO will raise IDR 118 billion. Out of this amount, the management of STRK allocates 54.73% or IDR 64.58 billion for LIS's working capital, leaving the remaining amount to the company. 

Said working capital will be divided by LIS for research and development program, the acquisition of canning machine and tank for beer and spirit production, as well as raw material purchase and brand awareness increase. 

For further detail, machine and tank for beer and spirit production mentioned above consist of a canning machine with a capacity of 3,000 to 3,500 cans per hour, 10 units of fermentation tank with a capacity of 3,000 litres, one unit of glycol tank of 500 litres, eight units of brite beer tanks of 3,000 litre, and three units of brite beer tanks of 8,000 litres. 

The machineries will be acquired from unaffiliated vendor. STKR is currently selecting vendors that provide beer production machine. (LK/ZH)