JAKARTA: Indonesia’s biggest clinical laboratory company Prodia Widyahusada has announced plans to provide a diamond lane for overseas institutional investors to own 5 percent of its shares, after selling 20 percent through an initial public offering (IPO).
Prodia’s two existing shareholders, Prodia Utama and Singapore-based Bio Majesty Pte. Ltd., will sell a total of 46.8 million shares. The shares will be offered abroad and only to foreign investors, the company’s prospectus read. The company declined to elaborate on the potential investors currently in negotiations for the private placement.
So far, it has collaborated with international health-care companies such as Swiss health-care firm Roche, American pharmaceutical company Abbott, German medical technology company Siemens Healthineers and Japanese health-care company Sysmex Corporation.
“The maximum 5 percent share sale will be conducted after the IPO. I cannot give you further details for now,” said the company’s corporate secretary Indriyanti Rafi Sukmawati, confirming that the shares would be sold on the secondary market, at the IPO price.
The company is offering the new shares at a price range of Rp 6,250 to Rp 8,000 apiece. Book building to set the final price is scheduled from Nov. 30 to Dec. 2.
By selling 187.5 million new shares through the IPO, Prodia expects to pocket up to Rp 1.5 trillion of cash (US$114.3 million) from the public.
The firm will use 67 percent of the funds to expand the company’s outlets in the country, either in existing markets or new ones.
Furthermore, 19 percent of the funds will be used to purchase new diagnostic equipment, non-laboratory tools and IT equipment. The other 14 percent will be used to strengthen the company’s capital structure.
“We currently have outlets spread across 30 provinces of Indonesia. We have just established a new outlet in Tarakan, North Kalimantan,” Prodia president director Dewi Muliaty said at a press conference in Jakarta on Thursday.
Established in 1973 in Surakarta, Central Java, Prodia opened a branch in Jakarta in 1975. Currently, it is the biggest clinical laboratory company in the country, with the capacity to conduct 7 million diversified health tests as of June, covering more than 500 types of medical assessments.
As of June this year, Prodia operated 251 outlets and 128 clinical laboratories in 104 cities across 30 provinces, serving around 1.2 million patients, half the total 2.3 million patients in 2015.
