Nov 2, 2010

Midi Utama eyeing Rp118.9 billion IPO

PT Midi Utama Indonesia Tbk, a retail company that operates and manages Alfamidi and Alfaexpress outlets, has set Rp97 billion to Rp118.90 billion proceed from disposing 423.35 million shares or 15% with price of Rp225 to Rp275.
Fernia Kristanto, Finance Director of Midi Utama Indonesia, said that 90% of the proceeds would be used to develop its outlets in Jakarta, Bogor, Depok, Tangerang, and Bekasi, along with other locations throughout West Java, East Java, Bali and Makassar.
As for the 10% of the proceeds will be allocated to finance the development of distribution center in Serpong, Bekasi, and Makassar.
Per September 2010, the company has operated 220 Alfamidi outlets and 140 Alfaexpress outlets and will grow to 250 Alfamidi outlets and 150 Alfaexpress outlets.
Midi have allocated capital expenditure as much as Rp287 billion for next year, which will be used to build 100 outlets and one distribution center.
Development of one Alfamidi outlet with 200 m2-400m2 sales area has spent Rp2.3 billion while Alfaexpress with 35m2-100m2 spent RpRp500 million.

Disclosure: No position at the stock mentioned above. 
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