REPUBLIKA.CO.ID, JAKARTA - Indonesia's largest integrated textile manufacturer, PT Sri Rejeki Isman (Sritex) finally launched their initial public offerings (IPO) at Indonesia Stock Exchange (IDX). The company's 5.6 billion shares or 30.12 percent oversubscribed by three times. President Director of Bahana Securities as underwriter, Eko Yuliantoro said 45 percent of total investors are foreign investrs and the rest is domestic investors.
"The market shows good response over development of textile industry in Indonesia. Sritex is rated enough to compete in national scale textile market," Yuliantoro said on Monday.
The company also prepares capital expenditure worth 2.4 trillion IDR for the fiscal year 2013 to 2014 to develop spinning and garment division. Director of Finance at Sritex, Allan Moran Severino said around 1.4 trillion IDR of capital expenditure derived from IPO, while the rest came from bank loans.
"Two trillion of capital expenditure will be used for spinning division, while 400 billion IDR to garment division," Severino said on Monday.
Severino added that after IPO, shareholders composition were owned by PT Huddleston Indonesia (56.07 percent), PT Estrada Trading Ltd (13.76 percent), the Founder, Muhammad Lukminto (0.05 percent) and the rest owned by the public. The company products divided into four categories, yarn, greige, fabrics, and apparel that are sold to textile producers as well as retailers.
Beside local market, the company has penetrated 94 markets in 55 countries. The company also covers military uniforms and supporting products for over 30 countries. Sritex is also an official partner outside Europe to produce military uniform for NATO.
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