PT Yupi Indo Jelly Gum plans to raise Rp 2.13 trillion (US$136 million) through an IPO to fund a new plant in East Java and support expansion in international markets. Approximately 77% of the funds will be directed towards the construction of the new facility, with operations expected to start in 2026.
PT Yupi Indo Jelly Gum, Indonesia’s leading gummy candy manufacturer, is poised to raise approximately Rp 2.13 trillion (US$136 million) through an initial public offering (IPO). This funding aims to finance the establishment of a new production facility and facilitate its global expansion. The company intends to issue up to 854 million shares, priced between Rp 2,100 to Rp 2,500, with plans to debut on the Indonesia Stock Exchange (IDX) on March 21, 2023.
According to the preliminary prospectus, roughly 77 percent of the net proceeds will be dedicated to capital expenditures, with significant investment directed towards a new manufacturing plant in Nganjuk, East Java. This facility is projected to be the company’s third in Indonesia and is expected to commence operations in 2026, involving an estimated investment of Rp 437.5 billion.
The remaining 23 percent of the funds obtained through the IPO will be allocated to working capital to bolster business expansion in both domestic and international markets. Established in 1995, Yupi stands as one of the largest gummy candy producers in Asia, with its products distributed across nine Southeast Asian nations and a total of 36 countries globally.
In summary, PT Yupi Indo Jelly Gum’s IPO is a strategic move to secure funding for a new manufacturing facility in East Java and to support its expansion efforts. By allocating a majority of the proceeds for capital expenditures and a portion for working capital, Yupi aims to enhance its manufacturing capabilities and widen its market reach, strengthening its position in the global candy industry.
Original Source: www.thejakartapost.com
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