JAKARTA. The subsidiary of PT Rajawali Nusantara Indonesia (RNI), PT Phapros conformed to conduct initial public offering (IPO). The company sees for as much as Rp 1 trillion of funds from the IPO.

“Definitely, the IPO will generate more than Rp 1 trillion of funds,” said President Director of RNI Didik Prasetyo, Tuesday (20/12). The obtained funds will be allocated for business expansion, mainly in sustaining factories constructions.

However, Phapros will just conduct the IPO in 2018.

Previously, Phapros planned to release 20% of its stakes to public in 2017. The company itself targeted to raise Rp 500 billion from the IPO. However, the management of Phapros later decided to develop its business rather than conducting IPO in an immediate time.

In order to develop the business, Phapros will release a worth of Rp 300 billion bonds. The funds will be allocated to established factory. “(The bonds) will be released in the first quarter of the next year,” Didik said.

To date, Phapros has a worth of Rp 700 trillion assets. After releasing the bonds and establishing the new factory, the assets will be Rp 1 trillion or even more.

In 2015, the income of Phapros increased by 19% to Rp 691.25 billion compared with the same period in 2014. It is predicted that the income by the end of 2016 will hit Rp 800 billion.

Analyst at Binaartha Pratama Sekuritas Reza Priyambada said that Phapros may take some advantages by releasing the bonds earlier. By releasing the bonds, Phapros can raise funds in an immediate time to establish factory, as well as launch business expansion. Unlike releasing bonds, IPO needs a longer period of time to generate funds.

Phapros will have a more promising prospect if the factory establishment runs smoothly. Reza said that Phapros will secure a better performance after the factory establishment. Subsequently, the better performance will make the shares of Phapros become more attractive.

In general, pharmacy industry still has promising prospect, thanks to the high demand. “Let alone, if Phapros has focusing segment, like KAEF and KLBF have,” Reza said.

Phapros is the producer of several brands, such as Antimo, Bioron, and X-gra (special for adult man). The company is also targeting to establish the second medicine factory in Ungaran, Semarang, with a total investment of Rp 450 billion.

The new factory may have production capacity of 2 billion tablets per year. Combined with the existing factory in Simongan, Semarang, the production capacity of Phapros is 3 billion tablets.

(Muhammad Farid/Translator)

Editor: Dupla Kartini