Should Softex Indonesia meet its target, its initial public offering would exceed that of Waskita Beton Precast, which raised Rp 5.16 trillion ($366 million) in 2016. (B1 Photo/Mohammad Defrizal)

Sanitary Pad Producer Aims for One of Indonesia's Largest IPOs

JULY 12, 2019

Jakarta. Softex Indonesia, one of the country's largest producers of feminine hygiene products, plans to sell its shares on the local bourse, in what could be one of the largest initial public offerings in the country in the past three years. 

"Softex recently met with the director of trading and membership to express its interest. The company is currently processing the IPO, but no documents were submitted to us," I Gede Nyoman Yetna, director of listing at the Indonesia Stock Exchange (IDX), said on Thursday.

Bloomberg previously reported that Softex sought to raise $500 million from an IPO this year.

Should the company meet its target, the IPO will exceed that of Waskita Beton Precast, which raised Rp 5.16 trillion ($366 million) in 2016. Adaro Energy's Rp 12.2 trillion IPO in 2008 is still the largest in Indonesia to date. 

Softex Indonesia has been around since 1976 now sells its products in more than 35 countries, including in Africa, Europe and Asia-Pacific. The company has two production facilities – one in Sidoardjo, East Java, and the other in Tangerang, Banten.

In addition to feminine hygiene products, Softex also produces various other products, including Sweety and Happy Nappy disposable diapers, Confidence sanitary napkins and Softies wet wipes.

The company is backed by global investment company CVC Capital Partners, which in its the fourth investment in Southeast Asia, acquired a minority stake in the company in 2015.

CVC Capital has been disposing of its investments in Indonesia this year to realize profit. The company sold its 23.5 percent stake in sportswear retailer MAP Aktif Adiperkasa for Rp 4.2 trillion in April. 

Softex rival Uni-Charm Indonesia is also planning an IPO. Kerry Rusli, a director at underwriter Sinarmas Sekuritas, said the subsidiary of the Japan-based Unicharm Corporation may eye up to Rp 1 trillion in fresh capital. 

"But the plan has not set in stone yet," Kerry said.

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