PT Berkah Beton Sadaya Tbk today officially listed its initial shares on the Indonesia Stock Exchange.

In its trading debut today, the company with the issuer code BEBS experienced a price increase of up to 35% to Rp135. Previously, BEBS offered the initial share price at Rp100.

Therefore, BEBS shares are subject to auto rejection upon or ARA. Based on stock exchange regulations, the limit for the increase in shares with a reference price of Rp50 to Rp200 is 35%.

The company is the 9th company in 2021 to be listed on the stock exchange. It recorded a transaction volume of up to 18,400 shares with a value of Rp2.48 million. The frequency is up to four times.

BEBS released 2 billion shares in an Initial Public Offering (IPO). This amount is equivalent to 22.22% of the issued and fully paid capital.

Shares are offered at a price of Rp100 so that the total fresh funds raised by BEBS reaches Rp. 200 billion.

During the public offering, which took place on March 1-4, 2021, BEBS shares were oversubscribed 32.07 times from the pooling offer. As for the IPO process, the issuer, engaged in the infrastructure supporting industry that produces ready-mix and precast concrete, collaborates with PT Mirae Asset Sekuritas Indonesia as the Underwriter.

"The company's move to enter the IDX through an IPO is part of a strategy to increase business expansion, funding capacity, governance, and the principle of better transparency as a public company, which is expected to be an added value for stakeholders," said President Director of PT Berkah Beton Sadaya. Tbk, Hasan Muldhani, in Jakarta, on Wednesday (10/3).

According to Hasan, the ready-mix and precast concrete manufacturing industries have good business prospects.

"The government is still making infrastructure development one of the priority programs for the next few years. This is because the infrastructure sector has a function in increasing the capacity and productivity of the economy, smoothing the distribution of goods and services, mitigating high urbanization and its role in reducing poverty levels, "he explained.

BEBS will carry out business expansion plans in several areas, such as in Subang (West Java), Central Kalimantan, and Central Sulawesi. In Subang, the company is building a Precast Square Pile factory.

In Central Kalimantan, BEBS plans to build one Batching Plant, two Crusher Plants, one Sand Mine, one Asphalt Mixing Plant (AMP), one Precast Square Pile factory, and one Precast Spun Pile factory. Meanwhile, in Central Sulawesi, BEBS will build a Crusher Plant.

"The construction of factories in Kalimantan and Sulawesi is the company's strategy for the development of business expansion, where the consideration is that the factory location is close to the location of raw materials for split stone and sand owned by the subsidiaries. The company can reduce the HPP of the product to sell the company's products at a reasonable price. Competitive, "said Hasan.

For your information, the issuer based in Subang will use 53.67% of the proceeds from the IPO to buy 74,045 square meters of land with a transaction value of Rp103 billion. Meanwhile, the remaining 46.33% of the IPO proceeds will be used for capital expenditures.