JAKARTA, 17 July 2023. PT Sinar Eka Selaras Tbk (ticker code: ERAL) or Erajaya Active Lifestyle (EAL) is holding an IPO on the Indonesia Stock Exchange, offering up to 20% of its shares to the public. ERAL was assisted by PT BNI Sekuritas and PT Mirae Asset Sekuritas Indonesia as joint lead underwriters.
The initial public offering (bookbuilding) of ERAL shares is set for 14 - 26 July, 2023. On 31 July, 2023, the Financial Services Authority (OJK) is expected to issue an effective statement letter. Following that, the public offering will take place on 2 – 4 August, 2023, followed by the listing of shares on the Indonesia Stock Exchange (IDX) on 8 August, 2023.
Approximately 37% of the IPO proceed will be utilized to expand existing businesses, 13.75% will be used to fund new business expansions, and 49.25% will be used as working capital.
ERAL is an issuer that is affiliated with the Erajaya Group and is a leading multi-brand retail and distribution solution provider in Indonesia. ERAL offers a diverse brand portfolio in three categories: Accessories (Ecosystem), Internet of Things (IoT), and active sportswear, fashion, alongside outdoors.
Djohan Sutanto, President Director of PT Sinar Eka Selaras Tbk (ERAL), stated that the IPO was an effort by ERAL to maximize the company's competitive advantage, particularly in company's present business and future potential.
“ERAL is a major player in the retail industry and has a large market in Indonesia. We also deliver innovative solutions and excellence services through a range of world-class active lifestyle products supported by the Omni-Channel network throughout Indonesia, allowing them to become the top choice for Indonesian consumers," he said.
Retail Sector Potential
According to Djohan, ERAL is certain that the retail sector in Indonesia will continue to thrive. Furthermore, the biggest national economic growth still come from consumption activities.
Consumption accounts for over 50% of national economic growth until the end of the first quarter of 2023. Meanwhile, according to Central Bureau of Statistics, the consumption sector grew by 4.54% year on year during that same period.
Until now, ERAL already has various top brand portfolios in the retail sector. In the Accessories (ecosystem) segment, ERAL oversees various top product brands, such as Apple, Samsung, Huawei, Xiaomi, Playstation, Microsoft, JBL and so on.
Meanwhile, ERAL handles the brands DJI, Garmin, GoPro, Marshall, Segway, and others in the Internet of Things (IoT) category.
Then in the active sportswear, fashion and outdoors segments, ERAL has a portfolio of JD Sports, ASICS and Urban Adventure brands.
Seizing Opportunities in the Future
Until the end of 2022, ERAL posted sales of IDR 3.04 trillion with an average annual growth (CAGR) between 2020-2022 of 24.11%. This achievement was obtained from sales support through 28 mono-brand stores, 36 multi-brand store stores, 56 distribution centers, and official stores on 3 e-commerce platforms respectively Tokopedia, Shopee and Blibli.
Furthermore, as part of the Erajaya Group, ERAL has exposure to over 6.5 million of MyEraspace members who use the eraspace.com e-commerce service, which provides several levels of unique rewards and benefits ERAL and Erajaya customers. This also aids ERAL in generating more sales.
Meanwhile, ERAL's net profit at the end of last year reached IDR 184 billion, with an average annual growth rate of 58.60% between 2020-2022.
ERAL also continues to expand its portfolio of international brands in sectors that are ERAL's focus, which is expected to boost the company's performance in the future.
To maximize profits, ERAL is also supported by the Erajaya Group, which has been a market leader in the distribution of many brands, particularly those related to gadgets. As a result of this, ERAL has evolved into a leading distributor for a wide range of end-to-end lifestyle products.
For further information, please contact:
Badar Teguh
Corporate Secretary PT Sinar Eka Selaras