Jakarta. Multipolar, a listed investment company controlled by the Indonesian multinational conglomerate Lippo Group, has announced a plan to raise Rp 1.75 trillion, or $122 million, in capital to fund its growth strategy and acquisitions, the company said in a statement on Tuesday.
The capital raise would comprise a fully-subscribed $50 million exchangeable bond and a Rp 1 trillion rights issue, with full support from Lippo Group owner, the Riady family.
Under the plan, Riady controlled entities, a Jakarta-based Inti Anugerah Pratama and Singapore-based OUE — who collectively own 60 percent of the company, would buy the new shares of Multipolar at Rp 500 per share. As part of the transaction, OUE had purchased 17.2 percent interest in Multipolar from Inti Anugerah Pratama at Rp 400 apiece, OUE said in a separate statement on Dec 19.
The right issue price was equal to the share price's six-month volume-weighted average price (VWAP). Multipolar share rose 2.6 percent to close at Rp 390 apiece in the first trading session at Indonesia Stock Exchange on Tuesday.
Multipolar said the 50 million exchangeable bonds were fully subscribed by a leading, Tokyo-listed Japanese financial institution. The bond has a 3+1 year maturity and offers interest at 1 per year for the first year, increasing over the three-year period, averaging 3.5 percent per year. The interest will be paid annually in arrears.
Multipolar said capital raise is part of the company's continuous effort to improve its financial position and return to profitability, on the back of a strong turnaround in the third quarter of 2021 amid the Covid-19 pandemic.
The company booked Rp 7.4 trillion in revenue in the first nine months period this year, and a profit of Rp 156 billion in the same period, returning to the black after posting Rp 504 billion net loss in the same period last year.
Adrian Suherman, Multipolar's chief executive officer (CEO) and president director, said with a track record of successfully investing in Indonesia, Multipolar was well-positioned to capitalize on the country's robust growth.
"Indonesia is the world's next consumer and technology powerhouse. Our track record of investing in Indonesia, building and working with strong management teams uniquely positions us to capitalize on Indonesia's growth story. We are grateful for the trust that our investors have placed in us and look forward to continuing to increase the value of our investments," Adrian said.
Multipolar is Lippo's publicly-listed investment company with a net asset value of over $2 billion, including investments in a diversified portfolio of mature, cash-generative, market-leading business and 40 early and late-stage technology companies in Southeast Asia.
Since 2015, Multipolar has been actively investing in Indonesia's high-growth companies, such as OVO, a digital payments company, and Ruangguru, the country's largest education provider. Other companies in its portfolio include Matahari Putra Prima, one of the leading retailers in Indonesia, a pay television and internet service provider First Media, and a lender Bank National Nobu.