Jakarta. Shares of Hartadinata Abadi, MAP Boga Adiperkasa, Integra Indocabinet and Armidian Karyatama soared during their trading debuts on the local bourse on Wednesday (21/06) thanks to investors' confidence in the companies' long-term financial prospects.
Shares of jewelry manufacturer Hartadinata Abadi, trading under the HRTA ticker symbol, closed 10.67 percent higher at Rp 332 apiece on the Indonesia Stock Exchange (IDX) on Wednesday, compared to a 0.46 percent gain in the broader index.
Hartadinata, the 13th company to go public this year, sold 1.10 billion new shares last month, equivalent to 24 percent of its equity, at an offering price of Rp 300 apiece.
The company raised Rp 331.39 billion ($24.9 million) in an initial public offering, with 42 percent of the proceeds earmarked as working capital, including the purchase raw materials.
Around 6 percent of the proceeds will be allocated towards the acquisition of new machines, while the remainder will go towards the establishment of an e-commerce platform for its jewelry products.
MAP Boga Adiperkasa
Shares of MAP Boga Adiperkasa, trading under the MAPB ticker symbol, closed 50 percent higher at Rp 2,520 apiece.
MAP Boga, a food and beverage unit of omni-channel retailer Mitra Adiperkasa, sold 22.17 billion shares, or 1.02 percent of its total equity, at an offering price of Rp 1,680 apiece, becoming the 14th company to go public this year.
The company raised Rp 37.25 billion from an IPO last week, as part of a bigger scheme to nail a partnership with United States equity firm General Atlantic.
As previously reported, GA Robusta F&B Company, a Singaporean affiliate of General Atlantic, exercised a bond-to-equity conversion deal to acquire a 19.88 percent stake in MAP Boga.
GA Robusta has issued confirmation that it will convert a zero-coupon convertible bond of Rp 725 billion, issued by Mitra Adi Perkasa in June last year, into about 431.6 million shares in MAP Boga.
MAP Boga sold a total of 453.72 million new shares, or 20.9 percent of its equity, in the two corporate actions.
OSO Sekuritas equity analyst Riska Afriani said MAP Boga Adiperkasa's shares are likely to be less liquid as shares controlled by the public only represent about 1.02 percent of its equity.
"General Atlantic is an institutional shareholder in MAP Boga, which means they are typically long-term shareholders and not actively trading the shares," Riska said.
MAP Boga, which holds and operates franchise licenses from global food and beverage brands such as Starbucks, Pizza Express, Krispy Kreme, Cold Stone Creamery and Godiva, plans to use its total IPO proceeds to fund business expansion by opening dozens of new stores this year.
"We are planning to open 60 food and beverage stores this year," MAP Boga Adiperkasa director Fetty Kwartati told reporters on the sidelines of the trading debut. She added that 30 stores have already been opened by the first semester of this year.
Fetty, who also serves as corporate secretary of MAP Boga's parent, Mitra Adiperkasa, said MAP Boga aims to open new stores both inside and outside Jakarta.
Shares of furniture producer Integra Indocabinet, which trade under the WOOD ticker symbol, closed 7.69 percent higher at Rp 280 apiece. As the 15th company to go public this year, Integra sold 1.35 billion new shares, or 20 percent of its equity, with an offering price at Rp 260 apiece last month.
Integra Indocabinet, which runs five factories in East Java that manufacture furniture products, raised Rp 325 billion from last month's IPO, with at least 56 percent of the proceeds going towards capital expenditure and 33 percent to refinance debt. The remainder of the proceeds is slated to fund working capital, including the purchase of new materials and to fund production costs.
Integra produces fully assembled furniture, knock-down furniture and building components, including wooden doors and related products.
About 78 percent of the company's products are exported, with companies in the United States, European Union and China as Integra's largest clients.
Integra Indocabinet is Riska's top pick as the company offers positive financial performance and business plans to long-term investors.
Shares of a property developer Armidian Karyatama, trading under the ARMY ticker symbol, closed 50 percent higher at Rp 450 apiece on Wednesday.
The company sold 1.6 billion shares earlier this month, which is equivalent to 20 percent of its total equity, at an offering price of Rp 300 apiece, making it the 16th company to go public this year.
Armidian, one of the subsidiaries of property developer Hanson International, raised Rp 491.25 billion from the IPO, with at least 70 percent of the proceeds set to go toward capital expenditure to acquire around 200 hectares of new land in Maja in Tangerang, Banten.
The remainder of the proceeds will be allocated to repay part of its debt to its affiliated company.
Armidian is currently developing the 2,000-hectare Citra Maja Raya residential project in Maja. The company is working with Hanson International and listed property developer Ciputra Development.
The project is aimed at lower-middle-income earners.
Riska of OSO Sekuritas said these newly listed companies enjoyed short-term positive sentiment among investors and stock price increases may not last long, especially as investors may seeks to soon realize their gains from soaring stocks prices.
"These companies' soaring stock prices are not really reflecting their fundamental performances," Riska told the Jakarta Globe on Wednesday. She added that further gains may likely continue for another three days to a week.
She said investors will later look at these companies' balance sheets and their long-term business expansion to more accurately price their shares.