Agricultural inputs producer PT Delta Giri Wacana has announced its initial public offering (IPO) on the Indonesia Stock Exchange (IDX), aimed at raising Rp1.03 trillion (US$64.6 million) in fresh capital from the planned offer of up to 1.66 billion shares at a price range of Rp420–620 per share.
Established in 2001, Delta Giri Wacana supplies a variety of products, including pesticides, fertilizers, seeds, sprayers, and mulch, through a well-established network of 1,000 agronomists, 50 brands, and strategically placed manufacturing facilities across the country.
President Director David Yaory revealed that the company holds an 8 percent share of the agricultural input market.
Delta Giri Wacana aims to expand strategically into regions like Riau and Medan, targeting a revenue milestone of Rp8 trillion (US$501 million) within the next 4–5 years.
“Our commitment to food security is reflected in our integrated supply chain ecosystem, emphasizing increased production capacity and strategic factory locations to streamline distribution,” Yaory said during a public presentation in Jakarta on December 3, 2024.
Utilization of IPO funds
It is stipulated in the prospectus that 54.7 percent of IPO proceeds will be allocated as Equity participation in PT Fertilizer Inti Technology; 8.9 percent for partial repayment of loans to PT Bank CIMB Niaga, PT Bank Maybank Indonesia, and PT Bank SMBC Indonesia via PT Dharma Guna Wibawa, another 33.1 percent for procurement of raw materials for pesticide production and expansion of its Cikande facility in Banten, and the remaining 3.3 percent as Equity participation in PT Semesta Alam Sejati for the production of agricultural tools, including sprayers and organic pesticide components.
Additionally, Delta Giri Wacana has pledged to distribute up to 30 percent of its net profits as dividends to attract investor interest.
Financial projections
Finance Director Danny Jo Putra predicts an 18 percent revenue growth in 2024, with revenue reaching Rp3.4 trillion and net profit projected at Rp180 billion.
Looking ahead to 2025, the company anticipates a 15–20 percent increase in revenue, targeting Rp4 trillion in sales and profits between Rp290 billion and Rp300 billion.
To meet these goals, the company plans to optimize IPO proceeds to boost production capacity and expand its distribution network.
Innovation and sustainability
Delta Giri Wacana is prioritizing the development of eco-friendly organic pesticides and advanced farming tools to address labor shortages and enhance land management efficiency.
Currently, the company operates 22 warehouses, supporting its extensive distribution network of 7,000 stores nationwide.
“Our focus on organic, sustainable solutions aligns with efforts to drive efficiency and environmental conservation in the agricultural sector,” Yaory said.
With its IPO, Delta Giri Wacana aims to strengthen its position as a leader in Indonesia’s agricultural market while contributing to food security and sustainability.
