Oscar Living Furniture Company Eyes IDR 50 Billion from IPO

Oscar Living furniture company, PT Oscar Mitra Sukses Sejahtera Tbk plans to conduct an initial public offering (IPO) by offering a maximum of 400,000,000 shares.

The number of shares offered is equivalent to a maximum of 21.10% of the company's issued and paid-up capital after the public offering, which are new shares issued from the Company's portfolio with a nominal value of IDR 10 per share.

Quoting the prospectus, Monday (4/4/2022), the new shares were offered to the public at an offering price range of around IDR 100 to IDR 125 per share.

"The amount of this Public Offering is a maximum of IDR 50,000,000,000," wrote the prospectus. 

The company has appointed PT Danatama Makmur Sekuritas as the underwriter for the securities issuance. 

Simultaneously with the issuance of New Shares, the Company is also offering a maximum of 400,000,000 Series I Warrants, representing a maximum of 26.67% of the number of shares that have been issued and fully paid up at the time the Registration Statement is submitted to the Financial Services Authority ( OJK).

Series I Warrants are given free of charge as an incentive for new shareholders whose names are recorded in the Public Offering allotment list issued by the Securities Administration Bureau on the allotment date, namely April 27 2022.

Each holder of one new share of the Company is entitled to obtain one warrant, each warrant giving the holder the right to purchase one new share of the Company issued in the portfolio.

Series I Warrants are securities which give the holder the right to purchase Named Ordinary Shares with a nominal value of IDR 10 per share at an Exercise Price to be determined later, which can be done during the exercise validity period which begins 6 months from the issuance of the Series I Warrants. by the Company, namely from 24 October 2022 to 28 April 2023.

All funds obtained from the results of this Public Offering, after deducting emission costs, will be used by the Company as follows:

Around 11.78% will be used by the Company for capital expenditures related to warehouse renovations and strengthening the trading network for furniture products by adding to its 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.

Around 88.22% will be used by the Company for 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 options for new warehouse locations, 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," wrote the prospectus. 

Check out the indicative IPO schedule for Oscar Living below. 

Initial Offer Period: April 4 - April 14 2022
Effective Date: April 21, 2022
Initial Public Offering Period: April 22 - April 27 2022
Allotment Date: 27 April 2022
Electronic Distribution of Shares and Warrants and Refund Date: April 28, 2022
Series I Shares and Warrants Listing Date on IDX: April 29 2022
Initial Trading Date for Series I Warrants: April 29, 2022
Final Date for Exercise of Series I Warrants: May 1, 2023

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