State lender PT Bank Rakyat Indonesia (BRI) Tbk (BBRI) is set to launch its own satellite next week, which is expected to become operational before the end of August. Meanwhile, health and beauty products retailer PT Duta Intidaya aims to raise Rp90.8 billion ($6.6 million) from an initial public offering (IPO) this year.
Bank Rakyat to launch satellite
Bank Rakyat is launching the world’s first banking service-dedicated satellite – BRIsat – to reach customers in remote areas.
BRIsat is scheduled to launch into orbit on the Arcane 5 rocket, belonging to Arienespace in Kourou, a commune in French Guiana, South America, on June 8 at 8:30 p.m local time, or June 9 at 03:30 a.m Jakarta time.
“We will reach a new milestone in the history of the banking industry, when BRI becomes the first bank that operates a satellite,” BRI president director Asmawi Syam said in Jakarta. “Indonesia is an archipelago and so it is more efficient to use satellite than fiber optic to reach the remote areas,” he said.
With the new satellite, he added, BRI hopes to add 10 million new customers across Indonesia. Currently, BRI serves 50 million to 60 million customers. The satellite will also enable BRI to enhance secure banking communications for more than 10,300 branches.
After the rocket launches, BRIsat will be positioned on its orbit at a longitude of 150 degrees East above Papua’s sky, and eventually handed over to BRI in August or 50 days after the launch.
Duta Intidaya to go public
Duta Intidaya, the operator of Watsons stores in Indonesia, plans to release 478 million shares in the IPO, representing 23 per cent of the company’s paid up capital. The shares will be offered at Rp170 to Rp190 each.
Trimegah Securities has been appointed as underwriter for the offering.
Duta Intidaya’s finance director Sukarnen Suwanto said, the company will use 35 per cent of the IPO proceeds to pay off debts, amounting to Rp26 billion, to London-based lender HSBC. The remaining funds will be used as capital to further expand the business.
“We are planning to open up to 20 new stores in 2016. Five will be outside Java with the first one being in Bali,” he said.
The book building will start from May 31 and run until June 6 this year. The public offerings will take place on June 17-21, and the shares will be listed on June 28.
Last year, Duta Intidaya posted a revenue of Rp192 billion. However, the company suffered a Rp35 billion net loss due to aggressive expansion. Net profit margin was recorded negative 18.21 per cent, while gross profit margin negative 42.33 per cent.
“To get a stable store traffic you need at least one to two years. Therefore, we expect the company to start making profit in the next two or three years,” Sukarnen explained.
Duta Intidaya President Director Lilis Mulyawati said the company was planning to enter the e-commerce business soon.
Duta Intidaya has secured partnership with Lazada and Go-jek to boost sales. Mulyawati said, proceeds from the IPO will help the company establish its own e-commerce platform. “Hopefully, in 2017, we will start working on our very own mobile app,” she explained.
Duta Intidaya was established in 2005 with an exclusive license from A.S Watson Group to operate Watsons stores in Indonesia. The company now manages 47 stores across Jakarta, Banten, West Java, and East Java.