Tuesday, 15 October 2019 | 05:33 WIB

Inocycle Technology Set to Offer 800 Million Shares in IPO

Inocycle Technology Set to Offer 800 Million Shares in IPO (netralnews)

JAKARTA, NETRALNEWS COM - Artificial staple fiber and non-moven (non-woven) industrial company PT Inocycle Technology Group Tbk will hold an Initial Public Offering (IPO) at the Indonesia Stock Exchange (IDX).

The company will issue 800,000,000 to the public, or at 39,996 percent of ordinary shares in the name of new shares of issued and fully paid capital with a nominal value of IDR 100, with an offering price range of IDR 240 to IDR 380 per share.

Director of PT Inocycle Technology Group Tbk Suhendra Setiadi explained, all 40% of the proceeds from the IPO will be used to repay debt to PT Putra Kary International, 30% for the development of new businesses through new subsidiaries in the form of joint ventures.

While around 30 percent will be used to increase the company's working capital to support operational activities, including for raw purchases.

"We will develop further in the future because we will protect the environment and the trend of using recycle fiber will continue to increase," he said in Jakarta, Monday (06/17/2019).

While President Director Jaehyuk Choi said, in addition to the ability of product development and strong production capability and proven track record on product innovation is one of our advantages compared to competitors.

"We also have a management team that is experienced with a good track record in the industry providing added value for us," he said.

Jaehyuk added, after-tax net profit at the end of 2018 was IDR 16,041 million, or an increase of 5.1 percent compared to post-tax net income for the year ending 2017 amounting to IDR 15,256 million. This increase was in line with the increase in gross profit, operating profit, and profit before tax which each increased by 47.1 percent, 55.1 percent and 9.4 percent.

In this initial public offering, acting as the underwriter who has been appointed by the company is PT Shinhan Sekuritas and PT Bahana Sekuritas.

The shareholder structure before the public offering owned by PT Hilon Indonesia amounted to 68.61 percent and PT Samudera Industri amounted to 31.39 percent.