DEPOK (eNBe Indonesia) - PT Avia Avian, a paint company, has kicked off its initial public offering (IPO) for 6.2 billion shares, representing 10% of its total issued and paid-up shares capital, priced at Rp780-930 a share to raise a maximum proceed of Rp5.76 trillion.
PT Mandiri Sekuritas, UBS Sekuritas Indonesia, and Credit Suisse Sekuritas Indonesia acts as the underwriter for this IPO.
The book-building or pre offering started on Friday last week (Nov. 12) and will last until Nov. 18, 2021. The offering is set for Dec. 1, 2021, and the listing on the stock exchange (IDX) is set for Dec. 7, 2021.
Current shareholders of Avia Avian are PT Tancorp Surya Sentosa (36.6%), PT Wahana Lancar Rejeki (32.49%), Archipelago Investment Pte. Ltd. (6.3%), Robert Christian Tanoko (2.24%), Rudi Tanoko (1.68%), and Rony Tanoko (1.68%). Public investors own the remaining 18.81%.
Avia Avian will use IPO proceeds for working capital (54.5%), for injecting capital to subsidiary PT Tirtakencana Tatawarna (18.2%), for funding a third manufacturing facility in Cirebon (14%), and for paying bank loan (13.3%).
Per May 31, 2021, Avia Avian booked net sales of Rp2.7 trillion, growing 32.29% year on year (y/y). It booked a net profit of Rp603.46 billion in the said period, doubled y/y.
Ebitda was over 30%. Avian brand holds a 20% market share, and the Company’s price earning (PE) is 26-31 times of net profit in 2022.
Avia Avian has 96 distribution centers and 30 distribution centers of third parties. Overall, the Company serves more than 52,000 stores of building materials nationwide.
Avia Avian’s production capacity will increase to 225,000 metric tons per year with a third manufacturing facility. Nov the Company has two manufacturing facilities in Sidoarjo (East Java) and Serang (Banten).
Avia Avian subsidiary entities are PT Tirtakencana Tatawarna, PT Solusi Rumah Praktis (Jakarta), PT Tirtakencana Batamindo (Batam), PT Bangun Bersama Solusindo, a joint venture (JV) entity with Saint Gobain Group, and PT Multipro Paint Indonesia.
Hermanto Tanoko born in Malang (1962) is son of Soetikno Tanoko (founder of Avia Avian). Hermanto is now CEO of Tancorp, and a crazy rich person in Surabaya.
In mid 2019 partnering with Tung Desem Waringin, He built a 5-star hotel (Vasa Hotel Surabaya) at a cost of Rp1.8 trillion.
As holding company, Tancorp has eight sub-holding; Tanbiz (manufacturing), Tanobel (food & beverage), Tanrise (property), Tanly (hotel & hospitality), Tanword (network & retail), Tanlife (beauty & health), Tanlink (distribution), and Trancreasion (resto & cafe). The manufacturing segment contributes 50% of revenue.
Soetikno Tanoko started its paint store in Malang in 1962, then produced paint for the home scale segment in 1978, employing 18 staff members.
