17 June 2013, Multipolar’s IT Unit Works Toward IPO Next Month
Multipolar Technology, the information technology unit of Indonesian consultancy Multipolar, aims to raise up to Rp 188 billion ($19 million) through first-time share sales to finance an expansion.
Multipolar Technology is selling 375 million shares, or about 20 percent of its capital, in an initial public offering next month. The shares will be offered for between Rp 425 and Rp 500 each, John Teja, a director at sales advisor Ciptadana Securities, told journalists on Monday.
The price range will give the company total proceeds of Rp 159 billion to Rp 188 billion. Some of the proceeds will be used as capital expenditure and working capital while Rp 46.5 billion will be used to pay a debt to parent Multipolar.
The company will offer its shares to investors on July 1 and 2 and plan to list it on the Indonesia Stock Exchange on July 8.
Multipolar Technology provides IT system integration services including hardware, software and IT solutions.
Hanny Untar, a director at Multipolar Technology, told reporters that the company’s investment will be used to acquire an office building as well as hardware purchases that will be used for peripheral outsourcing.
Hanny said Multipolar Technology had experienced strong growth in recent years as local companies spend large amounts on information technology systems.
In 2012, the company’s net income jumped to Rp 28.5 billion from Rp 3.14 billion a year earlier.
The company’s biggest customers are in the banking sector. Bank Mandiri, Indonesia’s largest bank by asset, contributed about 14 percent of the firm’s revenue last year.
Multipolar Technology is also expanding client bases in manufacturing and the oil and gas sectors, among others.