Jeweler Hartadinata Abadi Aims for Rp 534b in June IPO


MAY 10, 2017

Jakarta. Hartadinata Abadi, a jewelry manufacturer, is planning to raise up to Rp 534 billion ($39.96 million) from an initial public offering next month, the proceeds of which will be used to refinance its debt and fund working capital.

Hartadinata plans to sell 1.5 billion shares, equivalent to 30 percent of its enlarged capital, and sets to offer them at Rp 280 - Rp 356 a piece.

The jewelry producer appointed Mandiri Sekuritas, RHB Securities, and MNC Sekuritas as underwriters for the IPO.

Book building period is scheduled for May 10-24. The company will trade the shares at the Indonesia Stock Exchange (IDX) on June 20.

At least 50 percent of the IPO's proceeds will go for paying back the company's debts.

Hartadinata owes Rp 250 billion to Bank Mandiri, with an interest rate of 11.5 percent. The loan will mature in September.

Meanwhile, 42 percent of the proceeds will be used to fund the company's working capital, including the purchase of raw materials. About 6 percent of the proceeds will be allocated to the acquisition of new machines and the remainder for establishing an e-commerce platform.

"The platform is for our own wholesalers and suppliers to keep them updated on our jewelry models," Hartadinata Abadi president director Sandra Sunanto told reporters on Wednesday (10/05).

The company also plans to increase the capacity of its factories by 60 percent in the next five years.

Last year, Hartadinata sold 4,390 kilograms of jewelry, 14.8 percent more than a year earlier.

Hartadinata has also established its own jewelry shops — ACC Gold Store, Celine Jewelry and Claudia Perfect Jewelry — for consumers from the lower to the upper-middle income group.

"We are currently focused on developing ACC Gold Store and seek to open 10 more outlets by the end of this year," said Sandra, adding that the company also wants to open more than 100 new stores in the next five years, preferably in Sulawesi and Kalimantan.

Hartadinata Abadi started as home business in 1989. The company currently has four factories in West Java and distributes its products through 33 wholesalers and 600 outlets across the archipelago.

According to Sandra, it is now among the top three jewelry producers in the country.