PT Pelayaran Nasional Ekalya Purnamasari Tbk (ELPI) listed its initial public offering (IPO) on Indonesia Stock Exchange (IDX) on August 4, 2022, and targeted to raise IDR222.4 billion fund for its capital expenditure (Capex).
Founded in Ambon, Maluku, in 1992, the company specializes in shipping and logistics. It also has a shipping repair facility that was established in Samarinda, East Kalimantan, in 2005 and Gresik, East Java, in 2012. Currently, the company has assets of over 100 vessels of all kinds.
ELPI will not use the IPO fund to pay loans but instead will use it for investment, procurement, expansion and the construction of buildings necessary for the company’s development.
“The IPO fund is purely for ELPI’s investment, starting from the procurement of Offshore Support Vessels (OSV), Kazo Marine Sdn Bhd expansion in Malaysia, the construction of operational office and the construction of training centers for ship captains,” President Director Eka Taniputra said.
The company will use 56.7% of its Capex to procure the OSV while the remaining 16.97% will be for the acquisition of PT Multi Eximindo, which is part of Kazo Marine Sdn Bhd from Malaysia. Another 17.99% will be for the construction of ELPI main office building and 6.74% of the Capex will be for its training center. The 1.6% of the Capex will be for operational expenditure (Opex) as a result of the procurement of OSV vessels.
Kontan.co.id reported that the COVID-19 pandemic hit hard the shipping industry. Likewise, the Indonesian Shipbuilding Association (Iperindo) also projected that shipping repair and building facility business decreased in 2020. Until today, there is almost no orders to construct new ships from private companies.
Kalimantan Institute of Technology’s School of Marine Engineering in Balikpapan, East Kalimantan, said in its study that the impact on marine engineering resulted in the delay of production activities and logistics which caused low demand from importers.
