On April 18th, Shinhan Securities' Indonesian subsidiary announced that it had successfully listed PT Multi Makmur Lemindo (PIPA), a company that manufactures building materials, on the Indonesia Stock Exchange (IDX) on April 10th.
The IPO garnered more than 1 trillion rupiah (approximately 85 billion won) of pre-subscription funds, which drew keen attention from the market. On the day of listing, the price limit rose by 35% and closed at the upper limit.
PIPA, which was founded in 2005, produces and distributes PVC and has expanded its business into the production and distribution of PVC pipes and other building material products through OEM.
It currently has a manufacturing facility in Tangerang, Indonesia, with a production capacity of 300 tons, and plans to continue growing by constructing additional new plants and increasing production facilities. Its main products include PVC pipes, PVC fittings, PVC adhesives, and building material products.
PIPA raised 97.12 billion rupiah (approximately 8.6 billion won) of new funds by issuing 925 million shares at a public offering price of 105 rupiah per share. The funds raised will be used for the construction of a new PVC & HDPE pipe and PVC fittings plant, which will begin construction in the second quarter, and for the purchase of machinery/production facilities and operating vehicles.
Meanwhile, Shinhan Securities Indonesia was launched in December 2016 when it acquired a 99% stake in Makinta Securities, an Indonesian securities company. It is characterized by its strong competitiveness in the local IB market, unlike other Korean securities companies that focus on retail brokerage.
