PT Indo American Seafoods (ISEA) launched its initial public offering (IPO) on the Indonesia Stock Exchange (IDX) on Tuesday, with its shares opening 16.80 percent higher at Rp294 per share.
ISEA is the 29th company to go public on the IDX this year. The non-cyclical consumer goods company enlisted KB Valbury Sekuritas as the underwriter and lead manager for its IPO.
Post-opening, ISEA’s share price fluctuated, settling at Rp290 per share. The trading volume for this seafood processing company reached 38.35 million shares, with a transaction value of Rp10.93 billion, giving the company a market capitalization of Rp403.10 billion (US$25.8 million).
ISEA offered 290 million shares, which represent 20.86 percent of its total issued and paid-up capital, at a nominal price of Rp50 and an offering price of Rp250 per share. The IPO is anticipated to raise around Rp72.50 billion.
Additionally, the company will issue 145 million Series I Warrants, amounting to 13.18 percent of the total issued shares, with an expected maximum value of Rp32.48 billion from the warrant exercise.
Ibnu Syena Alfitra, President Director of Indo American Seafoods, emphasized Indonesia’s significant potential to expand its seafood trade globally, given the country’s abundant marine resources from both capture fisheries and aquaculture.
“This is evidenced by Indonesia’s fishery exports reaching US$2.8 billion from January to June 2023, with shrimp as the main export commodity, primarily to the United States (70 percent) and Japan (19 percent),” Alfitra said.
ISEA’s Chief Financial Officer, Ibnu Surya Ramadhan, cited that the Indonesian government aims to boost national shrimp production to 2 million tons by 2024. To achieve this, the Ministry of Marine Affairs and Fisheries (KKP) is promoting integrated shrimp farming models and revitalizing shrimp ponds.
In line with the government’s targets and programs, ISEA ensures that its products meet Indonesian National Standards (SNI) and the requirements of its export destinations.
Benefiting from the strengthening dollar, 98.5 percent of ISEA’s revenue comes from exports, while operational costs are in rupiah, supporting the company’s financial performance.
“With these favorable conditions, the management is optimistic about sustaining the company’s financial performance in the future,” Ibnu Surya said.
The net proceeds from the IPO will be allocated entirely for working capital purposes. Specifically 90 percent will be allocated for purchasing direct raw materials (including shrimp) and auxiliary materials (such as master cartons, polybags, trays, flour, and food additives) from both individual and corporate suppliers, another 5 percent for sales and marketing expenses and 4.85 percent for maintenance and utility costs.
The remainder is for office needs, including purchasing and replacing electronic equipment and other necessary office supplies.
Additionally, the proceeds from the Series I Warrant will be used for working capital, particularly for purchasing direct and auxiliary raw materials.
ISEA also plans to distribute cash dividends at least once a year, with a maximum payout of 30 percent of the net profit for the fiscal year ending December 31, 2024, to be distributed in 2025.
