Jakarta, CNBC Indonesia – The Saratoga Group Hospital Portfolio Company of Sandiaga Uno, PT Famon Awal Bros Sedaya Tbk or Primaya Hospital will conduct an initial public offering or IPO the funds of which will be used for capital expenditures.
Citing the prospectus published in the media, on Thursday (13/10/2022), Primaya Hospital will issue a maximum of 302,222,300 new shares with a nominal value of Rp. 10 per share, which represent 2.28% of the issued and paid-up capital by the capital company. The offer price is prepared between IDR 900 and IDR 950 per share. Therefore, the total value of the initial public offering of shares reaches a maximum of Rp.287.11 billion.
In addition, the planned use of the proceeds of the IPO after deducting the issue costs by 50% is used for the acquisition of additional land.
ANNOUNCEMENT
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As expected, the land was used for the construction of new hospitals in the large cities of Sumatra and Java. Any planned use of the funds will be transferred to the subsidiary upon execution of the land purchase operation.
Hence, 25% of the IPO funds will be used for additional costs for the development of existing hospital buildings and services. The objective is to develop infrastructures, structures and services in the form of increasing the capacity of beds and diversifying the services of the Primaya Group Hospital.
Of the 25%, 40% were assigned to Primaya Hospital in East Bekasi, 20% to Primaya Hospital in North Bekasi, 20% to PGI Cikini Primaya Hospital, 10% to Primaya Bhakti Wara Hospital and 10% to Sukabumi Primaya Hospital.
Hence, the remaining 25% of the IPO funds will be used for additional funding for the construction of a new hospital building. Allocation details are approximately 29% for Primaya Hospital located in Pagedangan / BSD, Tangerang, 29% for Primaya Hospital in Kelapa Gading, East Jakarta, and 42% for Primaya Hospital in Pakis, Surabaya.
Primaya Hospital Kelapa Gading is expected to operate in quarter IV / 2023 and Primaya Hospital Surabaya is expected to operate in quarter III / 2024. The potential issuer of this hospital operates 15 hospitals located in Pangkalpinang, Depok, Bekasi, Tangerang, Jakarta, Karawang, Sukabumi, Semarang, Palangkaraya and Makassar. Together with this IPO, Primaya will issue a maximum of 697,000,000 new shares in the context of the implementation of mandatory convertible bonds (MCBs) for Archipelago Investment Pte. Ltd, issued with a nominal value of Rp 627.3 billion. Together with the implementation of this MCB, the percentage of public ownership will be 2.17% of the total issued and paid up capital.
In the meantime, PT Indo Premier Sekuritas will be the underwriter of the bond issue, while the underwriter will be determined later.
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(RCI / ahh)
