Jakarta –
PT. Herbal Medicine and Pharmaceutical Industry Sido Appears Tbk (SIDO) is now transforming into one of the largest herbal medicine companies in Indonesia. The company, which started as a family business, grew in size due to one of the reasons for its initial public offering (IPO).
SIDO President Director David Hidayat explained that the company was officially listed on the Indonesia Stock Exchange (IDX) in December 2013. The initial share price at that time was Rp 580 per share.
He said that after the IPO, the company took a number of corporate actions, from acquiring pharmaceutical companies to building factories.
“The expansion of several production facilities, one of which is the completion of the second Tolak Angin factory to the last corporate action, is a stock split,” he said at the Capital Market Summit & Expo 2020, Monday (19/10/2020).
He explained that the process of raising funds from an IPO is not as difficult as imagined. He said, there are at least four stages.
First, internal improvements which include financial reports, taxation and management systems. This was followed by the preparation of a business plan for the next 5 years, determining underwriters and other supporting institutions.
Second, registering after the files and documents are complete to the Indonesia Stock Exchange (BEI) and the Financial Services Authority (OJK). Third, do marketing or public exposure to get investors.
“We as independent shareholders must tell about the company, SIDO’s management business and the company’s potential in the future to convince potential investors to invest by buying our shares,” he explained.
This process continues until the order is up to the determination of the initial share price. Fourth, distribution and listing of shares.
He said that for him an IPO was not merely seeking funding. But as a company transformation to become more professional.
He continued, as for the advantages of being a public company, there are many parties who supervise, both regulators and investors. So, the company can carry out good governance.
“For us, an IPO is not only about seeking funding but the initial foundation for the transformation from a family company to a more professional company,” he said.
To note, SIDO’s shares today closed at Rp 785 per share or up 2.61%. SIDO has also previously conducted a stock split or stock split with a ratio of 1: 2.
(acd/dna)
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