JAKARTA, 8 August 2023 - PT Sinar Eka Selaras Tbk (ERAL) has listed its shares on the Indonesia Stock Exchange on 8 August 2023 through an initial public offering (IPO). In this corporate action, the company succeeded in obtaining fresh funds from the capital market of IDR 404.6 billion through the issuance of 1.037 billion new shares on the stock exchange.
As an issuer that is still affiliated with the Erajaya Group, ERAL has a fairly broad business ecosystem. This is also a major supporting factor for the success of the company's business, which is engaged in the leading multi-brand retail and distribution solution provider in Indonesia.
This also attracted investors' interest in ERAL shares which were listed on the stock exchange, as seen from the high interest during the public offering period, so that they were oversubscribed by 56.64 times.
The IPO price for ERAL shares has been fixed at IDR 390 per share, up from an earlier range of IDR 370 - IDR 410 per share.
Around 37% of the cash raised will be utilized to expand current business, while the remaining 14% will be used to support new business expansions. The remaining 49% is allocated to the Company's working capital requirements.
"The company is here to take advantage of the huge potential of the lifestyle retail sector that continues to grow in Indonesia," said Djohan Sutanto, President Director of PT Sinar Eka Selaras Tbk (ERAL). Furthermore, consumption activities has been the most significant support for national economic growth to date."
ERAL was assisted in this corporate action by PT BNI Sekuritas and PT Mirae Asset Sekuritas Indonesia. Following the IPO, the ERAL shareholder composition became PT Erajaya Swasembada Tbk 79.9998%, the public 19.9764%, Employee Stock Allocation (ESA) 0.0236%, and Jemmy Hady Wijaya 0.0002%.
Commitment to Develop The Business
Djohan explained, "With experience in the retail sector and support from majority shareholders, we will continue to develop our business by maximizing the company's existing business and seizing new opportunities in the future."
Through a portfolio of active lifestyle products and an omnichannel network throughout Indonesia, ERAL provides innovative solutions and exceptional services.
ERAL already owns a number of strong brand portfolios for a variety of retail product areas.
ERAL oversees a number of leading product brands in the Accessories (ecosystem) area, including Apple, Huawei, JBL, Microsoft, Playstation, Samsung, Xiaomi, and others. Meanwhile, ERAL oversees the brands DJI, Garmin, GoPro, Marshall, Segway, and others in the Internet of Things (IoT) category. ERAL also has JD Sports, ASICS, and Urban Adventure brands in the sportswear, fashion, and outdoor segments.
Company's plan to expand its business in the lifestyle retail sector is based on the idea that the growing productive age demographic (15-59 years) will be the primary driver of increased spending on active lifestyle products in Indonesia.
In this situation, there are 177 million Indonesians (66% of the total population) in productive age group. Due to its enormous population, Indonesia is the largest retail market in Southeast Asia, with an expected market value of US$314.2 billion in 2025, according to Frost & Sullivan.
"Demand for active lifestyle products in Indonesia is on the rise, given that the productive age population is the primary driver of GDP growth and consumption in Indonesia," Djohan Sutanto concluded.