An investor looks through a magnifying glass to check share prices displayed on a monitor at Indonesia Stock Exchange in Jakarta in January. (B1 Photo/Mohammad Defrizal)

Multipolar Seeks to Buy Back 10% Shares


JULY 21, 2021

Jakarta. Multipolar Technology, a listed technological company part of Indonesian conglomerate Lippo Group, has unveiled a plan to buy back its shares, reflecting its confidence in bright prospects for its businesses in the post-pandemic economic recovery. 

Recent Multipolar's extraordinary general meeting of shareholders approved a share buyback plan, up to 10 percent of the company's paid-up capital valued at Rp 284 billion. 

The company would set aside up to Rp 425 billion for the plan, seeking to buy back its shares at the stock market at Rp 720 apiece at the most. Multipolar's share closed at Rp 685 apiece on Wednesday, having risen by 865 percent since the beginning of the year. 

 Multipolar was confident of its business prospects, particularly the retail sector, which was tipped to improve on the back of government vaccination efforts and social distancing.


"Along with economic recovery, the value of our investment, which is currently depressed due to the pandemic, will rise again. I still see the potential for further growth,” Multipolar's director Agus Arismunandar said on Monday.

The company plans to carry out the share buyback over the next 18 months, starting on July 21, 2021, until January 20, 2023. The company plans to keep the shares as treasury stocks for the succeeding three years. 

Also, Agus said the share buyback would ensure Multipolar's share price stability. 

“Indeed, the company's share price has increased significantly over the past few months. We want to ensure that there is a mechanism by which we can ensure stability in the company's share price,” he said on Monday. 

Regarding the 2021 target, cash flow management would remain the company’s priority after considering the fall out of the prolonged Covid-19 pandemic. 

The company plans to drive the operational value of the companies within their portfolio, evaluate and execute investment opportunities, including potential partnerships and divestments, and streamline costs to improve operational efficiency further.  

"Based on the plan, the company believes that net sales will grow with a target of 10-15 percent in 2021," Agus said in public expose on Monday.

Multipolar booked Rp 10.3 trillion ($7.1 billion) in sales last year, down 16 percent from Rp 12.3 trillion a year earlier. The company's losses narrowed to Rp 989 billion from Rp 1.04 trillion. 

Carro Investment

The company has been transforming itself into a tech investment company in the past few years, betting as early-stage investors in various tech startups across Southeast Asia. 

One of the company's investments was in Southeast Asia's automotive unicorn, Carro. Founded in 2015, Carro started as an online marketplace for cars before its expansion and its recent shift in focus towards middle-class consumers.

Carro raised $360 million from a Series C funding led by Softbank Vision Fund 2 on June 15 which pushed the marketplace valuation to above $1 billion, earning it a unicorn status. 

Multipolar was among the early investors in Carro. In 2016, Multipolar subsidiary's Venturra Capital was among investors for Carro's $150 million series A funding that include Singtel Innov8, Golden Gate Ventures, Alpha JWC Ventures, Skystar Capital, and GMO Venture Partners.

Agus said the investment reflected the company's focus on technology-based consumer services. He said by observing the behavior and needs of consumers in Indonesia, Multipolar would continue to open up investment opportunities in digital companies and startups.

Shareholders Meeting

Multipolar's annual general meeting of shareholders decided not to distribute dividends for the 2020 fiscal year and changed the structure of the company’s management. According to corporate secretary Natalie Lie, the meeting approved the resignation of Roy Mandey from his role as the independent vice president commissioner. 

The line-up for the company’s board of commissioners and directors for the remaining term of office is as follows: Bunjamin Jonatan Mailool as president commissioner, Alexander S Rusli, and Hadi Cahyadi as independent commissioners, and Jeffrey Koes Wonsono and Henry Jani Liando as commissioners.

Adrian Suherman became the company's president director, joined by Rudy Ramawy as vice president-director, Agus Arismunandar, Fendi Santoso, and Yerry Goei, who serve as directors. They would remain in the company until 2023.