Learn Jantra Grupo’s post-IPO plans; are there dividends in sight?
JAKARTA – PT Jantra Grupo Indonesia Tbk (KAKI), a prospective new issuer on the Indonesia Stock Exchange (IDX), has officially announced its initial public offering (IPO) plan by offering 450 million shares, equivalent to 21.68%.
With an offering price range of IDR 100-120 per share, KAKI is projected to raise up to IDR 54 billion in fresh funds from this corporate action.
According to IDNFinancials.com, Jantra Grupo Indonesia is the owner and operator of the Jantrakakikaki auto repair shop network, which currently has 11 branches spread across Java and Bali.
With the IPO proceeds, KAKI plans to allocate 44.91% or IDR 20 billion for the purchase of land in South Jakarta to build a new auto repair branch. Additionally, 31.65% of the IPO proceeds will be used to open five new branches in Jakarta, Bekasi, Bandung, Surabaya, and Semarang.
Next, 7.55% will be channelled to fund the expansion and operational costs of its subsidiary, while the remaining 7.01% will be used for the company’s own operational needs.
This expansion plan comes amid a sluggish Indonesian automotive market over the past year. However, referring to Jantra Grupo’s financial report in its preliminary prospectus, the company appears to have recorded significant performance improvements.
As of August 2024, KAKI's revenue increased by 14.26% year-on-year (yoy) to IDR 39.11 billion, with net profit surging fourfold to IDR 7.34 billion. Meanwhile, by the end of 2023, the company’s revenue reached IDR 50 billion, with a net profit of only IDR 1.1 billion.
It is worth noting that the profit surge as of August 2024 was driven by the absence of proforma adjustments from transactions with entities under common control.
Furthermore, according to KAKI's preliminary prospectus, the company plans to distribute dividends of up to 20% of the current year’s profit, starting from the 2024 fiscal year.
For your information, KAKI's bookbuilding phase runs from February 24, 2024, until tomorrow (26/2). The public offering is projected to take place from March 4-6, followed by listing on the stock exchange on March 10, 2025. (ZH)