PT Bentang Api Technic Tbk Officially Listed on BEI, Receives Fresh Funds of IDR 68.2 Billion from IPO

AEINews – PT Bentang Api Technic Tbk (BATR), which operates in the manufacturing and trading of heat-resistant refractory and insulation products, as well as construction services in Indonesia, was officially listed on the Indonesia Stock Exchange (BEI) on Monday, June 10 2024. With This recording makes BATR the 25th company to be listed on the IDX this year.

In this initial public offering (IPO), BATR released up to 20.50% of its shares to the public, namely 620,000,000 new shares at a price of IDR 110 per share, thereby obtaining fresh funds of IDR 68.2 billion. Apart from that, BATR also issued 620,000,000 Series I Warrants or around 25.78% of the total issued and fully paid shares at the time of IPO registration.

This Series I Warrant gives the holder the right to purchase ordinary shares with a nominal value of IDR 20 per share with an exercise price of IDR 300, which has a total value of IDR 186 billion. This warrant is valid for one year from issuance, with an implementation period from 10 December 2024 to 9 June 2025.

In this corporate action, PT KGI Sekuritas Indonesia acted as the underwriter for the securities issuance. Ridwan, President Director of BATR, stated that this IPO was an important moment for the company. Based on data from 6wresearch.com, the refractory market in Indonesia recorded a shipment rate growth of 78.34% in 2021 compared to the previous year, and is expected to grow at a CAGR of 4.7% until 2026.

IPO proceeds, after deducting emission costs, will be used for company business development, with details of 38.65% for purchasing land and buildings from affiliated parties, 10.00% for building construction and repairs, 5.67% for purchasing laboratory equipment, 6.84% for purchasing production machines, and the remainder, around 38.82%, for operational expenses such as inventory of finished goods and raw materials.

Meanwhile, the funds obtained from the implementation of Series I Warrants will be used entirely for the company's working capital. In terms of performance, until November 2023, BATR recorded a net profit of IDR 9.32 billion with revenue of IDR 123.18 billion. The company's total assets reached IDR 112.73 billion, with liabilities of IDR 41.43 billion and equity of IDR 71.29 billion.