Indonesian electric transportation company, PT Teknologi Mobilitas Tbk (VKTR) is set to become a publicly listed company through an initial public offering (IPO) of shares.
The Company is engaged in wholesale trading of new cars and new motorcycles in the form of Battery-Based Electric Motorized Vehicles (KBLBB), spare parts components, car accessories, and the car body industry for four-wheeled or more motorized vehicles, battery-based electric motorized vehicles, two-wheeled motorcycles and three as well as iron and steel foundry industry, spare parts and accessories industry for four-wheeled or more motorized vehicles through subsidiary companies.
VKTR’s shareholders prior to the IPO were PT Bakrie & Brothers Tbk (BNBR) with 56.9% share ownership, PT Bakrie Metal Industries (BMI) with 27.56% share ownership, and PT Kuantum Akselerasi Indonesia with 15.5% share ownership.
Raising fresh funds
Through the IPO, the prospective issuer of electric vehicle assembly will release a maximum of 8.7 billion ordinary shares or 20% of the fully paid-up and subscribed capital after the IPO.
On the e-IPO page, the subsidiary of BNBR offered an initial offering price ranging from Rp 100 to Rp 130 per share.
The company expects to raise fresh funds of up to IDR 1.1 trillion. All funds obtained from the public offering, after deducting IPO-related costs, will be used as follows:
- 39.9% for capital expenditure.
- 11.6% will be allocated to the subsidiary company, PT Bakrie Autoparts, in the form of capital injection, to support the business development activities of the company.
- 2.5% will be used to repay the principal debt to PT Tambara Tama Mandiri in full.
- 1.4% will be used to repay the principal debt to PT Andara Multi Sarana in full.
- 44.6% for working capital and/or operational expenses.
- Employee Stock Allocation and Management Stock Option Programs
Teknologi Mobilitas will also conduct a stock allocation program for employees, amounting to a maximum of 1% of the shares offered in the public offering, or up to 87.5 million shares.
The company will also implement a stock ownership option program for management, with a maximum of 1.3 billion shares or 2.9% of the issued and fully paid-up capital.
Acting as underwriters for the securities issuance are PT Samuel Sekuritas Indonesia, PT Ciptadana Sekuritas Asia, and PT Trimegah Sekuritas Indonesia Tbk. The IPO schedule for PT Teknologi Mobilitas Tbk is as follows:
- Initial Offering Period: May 26 – May 31, 2023
- Estimated Effective Date: June 8, 2023
- Estimated Public Offering Period: June 12 – June 14, 2023
- Estimated Allotment Date: June 14, 2023
- Estimated Electronic Share Distribution Date: June 15, 2023
- Estimated Listing Date on the Indonesia Stock Exchange: June 16, 2023
Financial Performance and Background Information
Regarding financial performance, the company recorded sales of IDR 1.1 trillion at the end of 2022, representing a 57.7% increase compared to the end of 2021.
The growth was attributed to the sale of 30 electric buses and increased sales from the subsidiary following a surge in demand from automotive customers in the post-pandemic Covid-19 recovery period.