United Bike Gears up for IPO to Fund E-Bikes Production Expansion

United Bike producer PT Terang Dunia Internusa Tbk (UNTD), a prominent player in the manufacturing sector, is poised to conduct its Initial Public Offering (IPO) on the Indonesia Stock Exchange in February 2024. The company is set to offer 1,666,666,700 new shares, equivalent to 25 percent of its capital, at a nominal value of Rp 25 per share. With an offering price ranging from Rp 170 to Rp 240 per share, UNTD aims to raise a substantial Rp 400 billion in fresh capital.

According to the company's prospectus, the public offering period is scheduled from Feb 1 to Feb 5, with the listing on the Indonesia Stock Exchange slated for Feb 7. To execute this corporate initiative, UNTD has enlisted the services of PT Mirae Asset Sekuritas Indonesia and PT BRI Danareksa Sekuritas as the lead underwriters. The prospectus explicitly outlines that UNTD intends to allocate all the proceeds from the IPO towards working capital and the acquisition of raw materials for electric motorcycles and e-mopeds. Notably, these raw materials will be purchased through independent third-party entities rather than affiliated parties, as stated in UNTD's announcement on Jan 11.