Officially trading debut on the Indonesia Stock Exchange (IDX), PT Nusa Palapa Gemilang Tbk (NPGF) shares were immediately hit by auto-reject (ARA) in less than 10 minutes of trading opened.

The company from Sidoarjo, East Java, released 648,047,200 new shares and received funding of Rp64.8 billion. In less than 10 minutes of trading on Wednesday (14/3), NPGF shares were immediately hit by auto-reject (ARA) with an increase of 35% or 35 points to the level of Rp135 after five transactions. Meanwhile, the market capitalization reached Rp437.43 billion.

The company, which is engaged in the production, marketing, and trading of artificial fertilizers, will use the IPO proceeds for business development.

The company will receive fresh funds from the IPO amounting to Rp64.8 billion, of which 82% of the funds obtained by the company will be used for land acquisition, 17% will be used to pay off the purchase of production machines, and the rest will be used for the company's working capital, namely the purchase of production raw materials.

The issuer coded as NPGF is the 15th listed company in 2021 and the 728th on the IDX to date.

President Director of Nusa Palapa Gemilang Uus Sudianto said that the company's steps to be listed on the stock exchange through an IPO are part of the strategy to expand its funding capacity to improve governance so that it will be even better in the future.

"The company's performance up to September 2020 has recorded positive revenue growth despite the Covid-19 pandemic spreading globally. The company remains optimistic that the current business prospects will still be positive in the future," he said on Wednesday (14 / 4).

Positive performance is shown in the growth in demand for NPK fertilizer from oil palm plantations due to the improvement in international CPO prices.