Finding Attractive Investment
Saratoga Investama, Partner for Investing in Indonesia
Saratoga Investama is an active investment holding company, which focus on growth phase, development phase and special situation in Indonesia. It runs operation of three key sectors in Indonesia economy such as; Natural Resources, Infrastructure and Consumer. Established in 1998 by Sandiaga S. Uno and Edwin Soeryadjaya, the company is being transformed to be strong holding investment company in Indonesia which has specialty to create added value and increasing investment. As for listed investee, Saratoga is investing in blue-chip company that will have strong potential growth and better risk management in portfolio such as Adaro Energy (ADRO IJ) and Tower Bersama (TBIG IJ).
Good Track Record in Investment Cycle
The company has shown consistent attractive result after going through some investment cycle in primary sector in Indonesia Economy. This good track record in investment had brought good profit despite it was early stages development or growth fase. Book value and market capitalization of investee has grown up consistently while listing of investee companies created significant added value. In natural resources, Saratoga started initial investment of Rp875 bn and grew up by about 8,9x after 5 years. In Infrastructure, it started investment of Rp852 miyar and grew up about 9,5x in 3 years. As for natural resources, company focus in Amara plantation, Interra Resources, MedCo power Indonesia. Of infrastructure investment, it focus on Lintas Marga Sedaya which build toll road Cikopo-Palimanan. The company will upgrade petroleum production of investee company Tri Wahana universal (TWU) from 6.000 barrel to 8.000 barrel. In short term, company will more focus in consumer segmen to developing Mitra Pinasthika Mustika.
Impressive Performance in FY12
In 2012, the company had stellar performances with revenue doubling yoy to Rp2.35 tn, helping a turnaround in operating income from loss of Rp92 bn in 2011 to profit of Rp147 bn in 2012. This further boosted net profit jumping more than double to Rp1.8 tn. Historically, the company saw a 32% and 58% CAGR in revenue during 2008-2012.
Offering 15% Stake at Rp6,100-7,800/Share
The company will float up to 15% of its enlarged capital at the offer price of Rp6,100-7,800 per share. Of total IPO proceed, US$50 m will be used for subsidiary debt payment, around 15% of proceed will be used to pay liabilities from Mitra Pinasthika Mustika acquisition, and the rest will be used for investment purpose including USD8.3m mezzanine loan to Lintas Marga Sedaya . Based on underwriter guidance, the IPO price implies 23%-0% discount to NAV or 13x-17x 2013PE based on underwriter consensus.
Offering Price Rp6.100-7800
Number of Shares 430 mn
Target Proceeds 2.6-3.3 tn
Indicative Timeable
Book building 29 Mei –
6 Juni
Effectic Statement 14 Juni
Offering Period 18-20 Juni
Allotment 21 Juni
Distribution & Refund 24 Juni
Listing 24 Juni
25 Juni
Use pf Proceeds (%)
Pay off Subsidiaries Debt. 18
Pay off Others Debt 14
Invesmnet Funding 68
Shareholders Post IPO (%)
PT Unitras Pratama 29.85
Edwin Soeryadjaya 27.57
Sandiaga S. Uno
PT Saratoga Intiperkasa
Public
27.57
0.01
15
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