JAKARTA. PT Multi Spunindo Jaya Tbk (MSJA), a non-woven fabric manufacturer, sets out to debut on Indonesia Stock Exchange (IDX) by issuing approximately 882.35 million shares. The company has been starting its bookbuilding phase today (18/12) until December 21, 2023.

The management agrees to issue 882.35 million shares, which are equal to 15% of total capital post-IPO, worth IDR 100 each. The company is said to offer them for a price ranging from IDR 250 to 350 per share.

Thus, in the end, MSJA projects to gain approximately IDR 308.82 billion at max, at the end of its IPO.

According to the issued prospectus, MSJA plans to use 40% of its IPO proceeds as capital expenditure. The capex will be spent on establishing a new production line of SAP sheet, including building the factory and purchasing the machine, by the end of 2024.

MSJA itself is now managing 13 production lines for different products in a factory with installed production capacity of non-woven fabric of 54,250 MT/day.

The fabric is then sent out as raw materials for many industries, including medical and hygiene, which constitute 60% of its users. Other industries also use up MSJA's products, including consumer goods, property, agriculture, oil and gas, and automotive, which make up 40% of its users.

Another 30% of IPO proceeds is allocated to pay off loans and facilities owed to PT Bank Mandiri (Persero) Tbk (BMRI) and PT Bank UOB Indonesia, leaving the remaining 30% to working capital.

With the bookbuilding starts today, the company aims to earn its effective date from OJK on December 29, 2023, before proceeding to main public offering on January 3-8, 2024. Then, the stock listing is projected to follow on January 10 next year. (ZH)