Indonesia’s pharmaceutical firm Kalbe Farme has invested $35 million in the construction of a new factory with another $16 million to be spent for operational support, while electronic transaction service provider Artajasa Pembayaran Elektronis has said that it will offer 437,505,800 new shares priced at Rp 100 apiece in its IPO.
Kalbe Farma earmarks $51m investment for new Jakarta plant
Indonesia’s largest pharmaceutical company Kalbe Farma announced that it will invest a total of about $51 million to launch its first biological drug factory as it aims to gain higher margins from its products.
According to a press statement by Kalbe, the company has already invested Rp 500 billion rupiah ($35 million) to construct the new factory in East Jakarta, while the remaining Rp 200 billion will be used to support research and development, and for technology transfer from Chinese and South Korean partners to support operations.
The factory, which will be run by Kalbe’s subsidiary Kalbio Global Medika, has a production capacity of 9 million units of erythropoietin per year. While the main aim will be meeting domestic needs for the product, Kalbe will also be looking to export it to other countries, mainly in Southeast Asia.
Most of Kalbe’s sales are derived from the local market through its prescription drugs, consumer health and nutritional products. As local sales remain sluggish, the company has started focusing on new markets to broaden its reach beyond Southeast Asia.
Artajasa eyes $3.2m through IPO
IPO-bound electronic transaction service provider Artajasa Pembayaran Elektronis has announced that it will offer 437,505,800 new shares priced at Rp 100 apiece, aiming to raise a total of about $3.2 million.
In a press release on its website, the company said that the public offering will be held from March 23 to March 26 and expects to be listed at the Indonesia Stock Exchange (IDX) by March 29.
Of the total proceeds, 60 per cent will be used by the company to improve its service quality and capability. The remaining 40 per cent will be used for working capital needs to support the company’s expanding network.
Artajasa executive director Bayu Hanantasena said electronic transactions is a promising industry spurred by the low banking and financial penetration in the country and expects his company will fare well in its public offering later in the month.
From 2014 to 2016, Artajasa’s net profit increased from Rp 407.72 billion to Rp 489.82 billion, recording a compound annual growth rate of 9,3 per cent.