IPO REVIEW
5 July 2018
PT Karisma Aksara Mediatama Tbk
IPO Summary
Schedule (Tentative)
Book Building 05 - 18 September 2014
Pricing Rp 175 - Rp 240
Effective Letter Obtained 26 September 2014
Offering Period 30 September - 03 October 2014
Allotment 06 October 2014
Distribution and Refund 07 October 2014
Listing 08 October 2014
IPO Structure
PT Karisma Aksara Mediatama Tbk (“Karisma”) is offering 535,821,500 shares or 30% of its paid-in capital in this IPO. 2% of the offered shares are allocated to Employee Stock Allocation. IPO proceeds (estimated at Rp 93 – 128 billion) will be utilized for subsidiaries investment for their business expansion (63.9%), BNI Bank loan repayment (21%), working capital (8%) and purchase of supporting equipments (7.1%). The subsidiaries investment will be used for purchase of new printing equipments, opening new stores and meeting their working capital needs. The joint lead underwriters are BCA Sekuritas and Kim Eng Securities. The pricing implied a P/E ratio of 11.2x – 15.3x.
General Company Information
Established in 1995, Karisma, through its wholly owned subsidiaries, has become a fully integrated business in printing, publishing and retailing education and religious books in Indonesia. The company currently operates 58 retail branches in almost every province in Indonesia with average store size of 400-500 m2. The retail stores open seven days a week. The company plans to open another 6 stores this year and another 15 stores next year mainly in eastern part of Indonesia. Karisma has 392 permanent employees as 31 July 2014.
The company, through its subsidiary (PT Binarupa Aksara) publishes mainly books that focus on child development, self-development and medical. It is one of the biggest publishers of medical books in Indonesia. Another subsidiary, PT Gospel Karisma Mediatama, concentrates on Christianity books. PT Binarupa Aksara is also a printer which accepts printing order from other publishers (52%) in addition to printing its own publication (48%). It currently holds license to publish more than 6,000 titles and has two printing facilities in Depok and South Tangerang.
The company is also one of the many e-commerce companies in Indonesia. Operating under the website of
www.tokobukukarisma.com , it offers more than 14,000 books titles online as well as office supplies.
Another subsidiary, PT Paperplus Indotama, manufactures and retails office supplies especially from paper & plastic products (e.g. folder, envelope, printing paper, etc.) under the brand name of Paperplus store.
Financials
Income Figures (Millions) 2010 2011 2012 2013 Mar 2014
Revenue 99,584 130,066 176,377 203,825 47,772
Printing, publishing and sales of books comprised 82.8% of revenue while manufacturing and sales of office supplies comprised another 13.6% of the revenue with the balance from sales of printed goods.
Overall, we feel that the financials reflect the openness of previously closely owned private enterprise trying to minimize its tax expenses. A change in the company auditor from Herman Dody Tanumihardja & Rekan to RSM AAJ Associates in 2013 also reflects the company increasing openness on its financial disclosures.
Key Financials 2010 2011 2012 2013 Mar 2014
Gross Margin 53.8% 43.1% 36.9% 39.4% 49.0%
Net Margin 0.2% 0.7% 1.3% 3.1% 13.8%
ROE 0.5% 2.0% 4.8% 11.5% 10.6%
ROA 0.1% 0.6% 1.3% 3.4% 3.4%
Interest Coverage 1.06x 1.28x 1.50x 1.83x 4.06x
Dividend Policy
Karisma has a dividend payout policy of 40% of its annual earnings. However, for FYE 2014, it will not pay any dividend as it still has negative retained earnings.
Recommendation for participating in the IPO
- Integrated operation from printing, publishing and retailing - Wide spread distribution of its stores in Indonesia
- Specialized in education, medical and self-development books.
- Strong market presence outside Jakarta and have own transport & distribution network - Indonesia’s growing population and new government emphasis on education.
Risks
- Technology development leaning to e-book and electronic channel type of distribution. - Tight competition with Gramedia as the leading Indonesia integrated bookstores.
PT Karisma Aksara Mediatama Tbk
Director Rachmanadi P. Erlangga
Director Heidi Saputra
Director Sri Widodo, SE
Independent Director Budiarto Winarto
Pre-IPO Shareholder (%)
Lyndon Saputra 0.9718%
Daru Susilowati 0.6478%
Dyah Widhtyaningsih 0.0001%
PT Speednet Kalimantan 98.3803%
Post-IPO & Employee Stock Allocation (%)
Lyndon Saputra 0.6803%
Daru Susilowati 0.4535%
Dyah Widhtyaningsih 0.0001%
PT Speednet Kalimantan 68.8661%
Public 29.4000%
Employee Stock Allocation 0.6000%
Karisma Group Structure
RESEARCH
PT Karisma Aksara Mediatama Tbk
Bagus Hananto [email protected] (62-21) 3190-1777 ext. 219
Marselius Taruna [email protected] (62-21) 3190-1777 ext. 220
INVESTMENT BANKING
Rahmat Sugiono Halim [email protected] (62-21) 3190-1777 ext. 222
EQUITY SALES
Agi Susanti [email protected] (62-21) 3162-075
Ardylan Prasandy [email protected] (62-21) 3162-063
Dick Hermanto [email protected] (62-21) 3162-063
Pandu Endra [email protected] (62-21) 3162-062
Siti Qobtiah [email protected] (62-21) 3162-065
Supardi [email protected] (62-21) 3162-025
PT ONIX Sekuritas
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