Shares of independent power producer Megapower Makmur soared during its market debut on the Indonesia Stock Exchange (IDX) on Wednesday (05/07). (Reuters Photo/Beawiharta)

Hand Former Manufacturer Mark Dynamics Seeks to Raise $3.6m in July IPO


JUNE 06, 2017

Jakarta. Ceramic hand former manufacturer Mark Dynamics Indonesia will seek to raise Rp 48 billion, or $3.61 million, in an initial public offering next month to refinance its debt and fund a planned business expansion, a company director said on Tuesday (06/06).

The company plans to sell 160 million new shares, equivalent to about 21 percent of its enlarged capital, at Rp 200 to Rp 300 per share, according to a company statement.

Mark Dynamics has scheduled a book building period on June 2-8 and offer prices from June 22 to July 5 before listing its shares on the Indonesia Stock Exchange (IDX) on July 12.

Brokerage firm Panin Sekuritas will act as the company's underwriter for the IPO.

A planned 67 percent of Mark's proceeds will be used to pay back loans to local lender Bank Permata, while the remainder will be allocated to acquire land and construct new facilities at the location of its existing factory in Tanjung Morawa in Deli Serdang, North Sumatra.

The company will look to increase production capacity at its factory by 10.5 percent to 420,000 hand former pieces per month by the end of the year. Last year's production rate stood at 380,000 pieces per month.

"We hope to increase our factory production by 10 percent each year," Mark Dynamics Indonesia president director Poh Seng Hiap told reporters during at the IDX on Tuesday.

Mark Dynamics produced 207,224 pieces of hand former last year, a 6.4 percent surge from the year prior. Around 90 percent of the company's products were sold overseas.

The company produces and supplies ceramic hand formers for medical, household and industrial purposes, with the majority of the company's products are shipped to glove manufacturers in Malaysia, Thailand and Vietnam. Indonesian glove manufacturers purchase around 10 percent of all Mark Dynamic sales.