PT Garuda Metalindo to Collect IPO Funds for Rp 375 Billion

Manufacturer of fasteners and cold forging parts PT Garuda Metalindo aims for an initial public offering fund of Rp 375 billion, which will be achieved despite the automotive industry is on the decline. However, the situation and the condition does not preclude a person to meet the needs. Priced at USD 550-800 per share from the issuance of 468 million new shares.

IPO proceeds will be made to a number of needs, 20 percent as working capital, and 52 percent for debt refinancing, and the remaining 28 percent for capital expenditure. 28 percent were prepared for short-term needs, namely the improvement of automation systems and financing one of the new products automotive demand. For the medium term, the company will anticipate the growth of the automotive industry by increasing capacity for the needs of four-wheeled automobile.

"The automotive industry is forecast to grow 100 percent in 2020 to 2 million units. Then to 3 million units in 2025," said Finance Director of Garuda Metalindo Ervin Wijaya. First quarter 2015 performance is beyond expectations despite the economic downturn and the slowdown in the automotive growth. Future growth is believed to be better.

The Company produces components for Astra Honda Motor (AHM), Yamaha Motor Manufacturing Indonesia (YMMI), Indomobile Suzuki International (ISI), Toyota Motor Manufacturing Indonesia (TMMI), Astra Daihatsu Motor (ADM), Kramayudha Tiga Berlian Motor and so on. Production of automotive fastener products are the Spring Center Bolt and U Bolt for trucks in Indenesia. In line with the increasing demand, the company continued to expand its operating network. "Currently, we produce various bolts and nuts with a diameter of 2-33 mm and also a variety of automotive components for two wheels and four wheels," said Hendra Wijaya, president Director of Garuda Metalindo.

Currently, the company has two locations with the total production capacity of approximately 36 thousand tons.