Dyandra Media International, a unit of Kompas Gramedia Group, aims to raise Rp 1 trillion ($104 million) from an initial public offering this year.
Dyandra will be the first company under Kompas Gramedia Group to list its shares in the local market. Dyandra’s IPO plan comes along with bullish investor sentiment in the local exchange.
The local stock market achieved a new record on Wednesday, with the main composite index rising 0.5 percent to hit 4,571.57.
Danny Budiharto, operations director of Dyandra, said on Tuesday that the IPO is intended to improve how the company functions.
“The IPO is not just intended to raise funds but also to improve governance,” Danny said, adding that publicly listed companies are encouraged to improve their transparency and accountability.
News of Dyandra’s IPO was first revealed by Hoesen, a listing director at the Indonesia Stock Exchange (IDX), last year.
Dyandra has named Mandiri Sekuritas and OSK Nusadana Securities as arrangers of the share sale.
The company has yet to disclose other details, such as the share price and offering period.
Budi also said that Dyandra plans to spend around Rp 3 trillion to finance expansion plans this year, including construction of convention centers and hotels.
The company plans to build convention centers in Tangerang, Banten province, Makassar, South Sulawesi and Bali.
Dyandra also plans to build a total of four more hotels in Bali, Jakarta and in Cikarang, West Java.
Dyandra, established in 2007, is an umbrella organization for 10 companies with different business interests: Dyandra Promosindo, Kerabat Dyan Utama, Dyandra Communication, Samudra Dyan Praga, Archipelago Sapta Pesona, Graha Santika Dyandra, Dyamall Graha Utama, Indonesia Computer Square, Gramedia Expo Surabaya and Venue Magazine.
Graha Santika Dyandra is the owner and operator of the Santika Indonesia Hotels & Resorts.
Kompas Gramedia Group is controlled by media tycoon Jakob Oetama, and the group also publishes Kompas, a daily newspaper with more than 500,000 subscribers.
Dyandra last year set up a joint venture with Sinar Mas Land to build Asean’s largest exhibition hall in BSD City, Serpong. The construction commenced in 2011 and is scheduled to be completed sometime this year.