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Pertamina’s subsidiary Tugu Pratama launches 15% IPO

Tugu Pratama President Director Indra Baruna (center) was accompanied by other directors at a recent press conference. (Photo credit: Tugu Pratama)

JAKARTA (RambuEnergy.com) – General insurance company PT Asuransi Tugu Pratama Indonesia on Tuesday (10/4) launches an initial public offering (IPO) by offering 15% of its enlarged capital or 282.35 million units of shares.

The company has set offering date on May 7-9, followed by listing on the Indonesian Stock Exchange on May 15, 2018. As much as 5% of the shares to be offered via IPO will be allocated for the employee stock allocation (ESA) program.

The company has yet to set the price of the IPO. It has appointed PT Danareksa Sekuritas and PT Mandiri Sekuritas as the underwriters of the IPO.

It said 75% of the IPO price will be used to strengthen its business – 54% to develop marketing infrastructure, 36% for IT development and 10% for rebranding -, while 25% to inject capital in subsidiary firm PT Tugu Reasuransi Indonesia (TRE) through PT Tugu Pratama Interindo.

Currently, Pertamina controls 65% shares in Tugu Pratama. The other shares are held by PT Sakti Laksana Prima (17.60%), Siti Taskiyah (12.15%) and Mohamad Satya Permadi (5.25%).

After the IPO, Pertamina’s shares will dilute to 55.25%, Sakti Laksana to 14.96%, Siti Taskyah 10.33% and Permadi 4.46%, while the remaining 15% shares will be held by the public investors.

Tugu Pratama is one of the largest general insurance companies in Indonesia. In 2017, it booked premium income of US$183.34 million, up from US$134.8 million in the previous year. Its net profit reached US$44.64 million, compared to US$68.80 million in the previous year, due to higher expenses.

Its equity in 2017 stood at Rp3.4 trillion, up from Rp3.7 trillion in the previous year, while risk-based capital stood at 378.09%, far higher than minimum requirement of 120%. (*)

Written by Roffie Kurniawan, email; roffie.kurniawan@gmail.com

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