Oscar Living Furniture Company (OLIV) wants to IPO, offering price IDR 100-IDR 125

Bisnis.com, JAKARTA - The Indonesian Stock Exchange (BEI) has welcomed another new issuer. This time PT Oscar Mitra Sukses Sejahtera Tbk. (OLIV) will conduct an initial public offering (IPO) with a book building price of IDR 100-IDR 125. Entering the non-cyclical consumer sector, the household products sub-sector, Oscar Living furniture producer and distributor will release 400 million shares or the equivalent of 21.1 percent of the shares with a nominal value of IDR 10 per share. With an initial offering price of between IDR 100-IDR 125, the prospective issuer coded OLIV will reap IPO funds of between IDR 40 billion and IDR 50 billion. Meanwhile, the admin participant is Danatama Makmur Sekuritas which also acts as the securities underwriter. The bookbuilding period will be held for 10 days from April 4 2022 to April 14 2022.

OLIV also issued series I warrants at the same time as the IPO, amounting to 400 million series I warrants, representing a maximum of 26.67 percent of the total issued and paid-up shares. The series I warrants give the holder the right to purchase ordinary shares in the name with a nominal value of IDR 10 per warrant which can be exercised starting 6 months after the series I warrants are issued by the company from 24 October 2022 to 28 April 2023.

Meanwhile, the exercise price of the series I warrants will be determined later. For every purchase of one company IPO share, investors are entitled to 1 series I warrant. Furthermore, all funds obtained from the IPO, after deducting emission costs, will be used around 11.78 percent for capital expenditures related to warehouse renovations and strengthening the trading network for furniture products by adding to the own fleet in the form of trucks. At the time this prospectus was published, the Company was still in the exploration stage for the party that would be appointed as a transaction counterparty with the Company. The company estimates that the implementation period for the use of funds will be around 2 years. Furthermore, the remaining 88.22 percent will be used as working capital in the form of purchasing supplies, employee salaries and marketing activities. The use of funds from this Public Offering also includes renting new warehouses. At the time this prospectus was published, the Company was still in the stage of exploring several new warehouse location options, where the new warehouse locations would be located in various cities in Indonesia.

Meanwhile, the funds obtained by the Company from the implementation of Series I Warrants will be used entirely for working capital in the form of purchasing inventory, employee salaries and marketing activities. The Company is a company engaged in online furniture trading. As one of the pioneers in online sales, the Company was invited to collaborate with various marketplaces, one of which is JD.ID. The company received an award as the first furniture store in the marketplace. Initially, the company used this opportunity as an additional sales channel for its business activities. However, with the increasing trend of online shopping and due to the prolonged Covid-19 pandemic, online sales have become one of the largest contributions to the Company's sales. The company continues to add various new products, both brands and sub-categories such as Laundry & Cleaning, Baby Furniture, Plastic Furniture, to complete the company's portfolio which aims to increase sales.