Three Indonesian companies are moving ahead with plans for a public listing on the domestic stock exchange, DealStreetAsia has learnt.
Private hospital chain Primaya Hospital Group is exploring a possible IPO on the Indonesia Stock Exchange (IDX) to raise funds for expansion, as the COVID-19 pandemic has spurred demand for, and investor interest in, healthcare services.
Primaya Hospital plans to complete its listing in the next one year and is looking to raise Rp1 trillion ($70 million), said two sources aware of the plans.
Leona Karnali, CEO of Primaya Hospitals, declined to comment for this story.
Primaya Hospital was founded by Prof. Yos E Susanto in 2006. In 2016, it partnered with one of Indonesia’s leading investment companies PT Saratoga Investama Tbk for the development of a hospital network.
Between 2017 and 2019 the partners began to establish hospital branches across Indonesia. Today, Primaya has a network of around 10 hospitals with specialties that include cardiology, mother and child care, oncology, and trauma care. Backing Primaya Hospital was part of Saratoga’s plan to focus on the consumer sector.
In a recent report in the Indonesian newspaper Kompas, Karnali said that Primaya plans to open 3-4 new hospitals every year.
Earlier this month, another Indonesian hospital chain, Bunda Medik, launched an IPO on IDX raising around $15 million. The shares of the group rose by around 140% to Rp 1,005 within ten days of its debut, a sign of clear demand for healthcare services, say experts.
Another significant healthcare IPO in 2020 was that of Metro Healthcare Indonesia. The hospital chain operator raised Rp 1.1 trillion ($63 million at the time).
“It is a good time for hospital chain IPOs. Besides the immediate demand from COVID-19, people are more concerned about health and wellness in general. There are also non-COVID-related afflictions brought about by prolonged lockdowns, such as mental health issues,” says Joel Shen, partner of global law firm Withers.
While 2020 was a dull year for public listings and many IPOs got deferred, analysts expect Indonesia’s startups and big state-owned enterprises to produce more valuable stock market listings in 2021.
Tempo’s digital media unit planning share sale
Another major Indonesian company exploring plans for an initial share sale is a unit of PT Tempo Inti Media Tbk (TMPO), one of the country’s biggest media groups.
The group is planning a listing of its arm PT Info Media Digital (IMD) by end-2021 or early-2022, according to sources. IMD is looking to raise around Rp150-200 billion ($10-14 million), they added. The unit operates Tempo’s online news portal tempo.com.
“We haven’t taken any final decision yet. Everything is still in the pipeline,” said Arif Zulkifli, editor in chief at Tempo in response to DealStreetAsia’s queries.
The parent company PT Tempo Inti Media Tbk, which is listed on the IDX, has interests in news production and publishing. Its business is classified into two segments — publishing and printing. Its flagship product is Tempo, a weekly news magazine. It also publishes Koran Tempo, a daily newspaper; Tempo English, the English edition of Tempo, and Tempo.com.
IMD was planning an IPO last year but postponed the decision due to market conditions.
Cimory appoints CLSA as IPO banker
Indonesian dairy firm Cimory group, best known for its yoghurt drinks, has hired the Hong Kong-based investment firm CLSA as the banker for its planned IPO, sources confirmed to DealStreetAsia.
Bloomberg had reported in March that the company is working with advisors on the first-time share sale looking to raise $300 million. That would make it the biggest Indonesian IPO since Asuransi Jiwa Sinarmas Msig Tbk’s $334 million share sale in 2019, the report added.
Cimory did not respond to DealStreetAsia’s query.
Founded in 1992, Jakarta-based Cimory makes dairy, soy, and egg products under various brands including Cimory, Kanzler and Besto, according to the website of Creador.
Malaysian private equity firm Creador, which had invested in Cimory in 2015 for a 20% stake, sold the stake back to Cimory’s founding family Bambang Sutantio for an undisclosed value, DealStreetAsia had reported in February last year.