Get Ready to Make Money! Net profit soared 458 percent, Homeco Living (LIVE) is ready to IPO

TIMESINDONESIA, JAKARTA – Homeco Victoria Makmur Tbk (LIVE), a large trading company specializing in household appliances to toys, released its shares on the Indonesia Stock Exchange (IDX).

Homeco Living (LIVE) provides high-quality kitchenware, cookware, bags, stationery, and wet wipes. As a holding company, the company also manages one subsidiary – PT Trisinar Indopratama (TSI), which is a company engaged in the plastic goods industry for packaging, children’s toys, other plastic goods, equipment and household appliances (excluding furniture) made from plastic under the Technoplast brand. 

TSI itself has 24 years of business experience in producing high-quality products.

Through its Initial Public Offering (IPO), LIVE is offering up to 808,350,000 shares, equivalent to a maximum of 17.6% of its issued and fully paid-up capital with a nominal value of IDR 25 per share. 

According to its prospectus, the company owned by Sjamsoe Fadjar and Ellies Kiswoto set an IPO price range of IDR 148 per share, with the aim of raising a maximum of IDR 119,635,800,000 in fresh funds.

“Throughout 2022, Homeco recorded revenue growth of 86.53% with a net profit achievement of 458%. Management feels that this achievement is the right moment for the company to conduct a public offering (IPO). In the future, management will always maintain the company’s growth to increase value for shareholders,” said Sjamsoe Fadjar, President Commissioner, PT Homeco Victoria Makmur Tbk (LIVE).

“The anticipated high market interest in Homeco creates a golden opportunity for investors to gain potential profits. Take advantage of this opportunity on February 12, 2024, and earn a lucrative potential return on investment,” he continued. 

In addition, the company plans to allocate Employee Stock Options, offering up to 8,350,000 common shares, representing 1.0330% of the IPO, to its employees through the Employee Stock Allocation (ESA) program. To facilitate this corporate action, PT Binaartha Sekuritas and PT Samuel Sekuritas Indonesia have been appointed as underwriters.

The proceeds from the IPO, net of issuance costs, are primarily intended to finance the company’s expansion, which will be used to purchase inventory and finance the company’s operations. In addition, funds from the IPO will also be used to pay off some of the company’s maturing debt.

It is planned that all IPO proceeds obtained by the company from the sale of shares offered through this initial public offering will be allocated as follows:

– Approximately Rp25,000,000,000.00 (twenty five billion Rupiah) will be used to repay part of the Company’s debt to PT Bank Central Asia Tbk (“BCA”) amounting to Rp25,000,000,000.00 (twenty five billion Rupiah) which will mature.

– Approximately Rp25,000,000,000.00 (twenty five billion Rupiah) will be used to repay part of the Company’s trade payables to PT Trisinar Indopratama (“TSI”) as a Subsidiary of the Company.

And the rest will be used for business development in the form of working capital which is not limited to the purchase of inventory (which is a product whose Intellectual Property Rights (“HAKI”) are registered in the name of the Company), inventory of supporting materials (in the form of materials that will be used for packaging the Company’s products), inventory of trade goods (which is a product of goods from third parties directly purchased by the Company for resale), shipping of trade goods and marketing costs and other operational costs (costs included in general and administrative costs including but not limited to employee salary expenses, inventory transportation costs, and others).

After the IPO, Homeco Global Investasi’s ownership will be diluted to 78.69% and the public portion with ownership below 5% will be 21.30%. Homeco Living (LIVE) Successfully Houses Dozens of National – International Brands!

More than just a “retail store” Homeco Living (LIVE) is a lifestyle destination for consumers seeking quality and style in home products. Known as a pioneer in the industry, Homeco Living has successfully carried dozens of leading national and international brands. With a wide range of products that include furniture, housewares, décor, and accessories, Homeco Living provides a one-stop solution to meet the needs and tastes of modern consumers.

Homeco Living’s success in reaching dozens of national and international brands marks their dedication to high quality standards and innovation in design. 

By combining elements of functionality, beauty and sustainability, the products offered by Homeco Living not only fulfill practical needs, but also inspire an elegant and sustainable lifestyle for their customers.

The endorsement of reputable brands in the industry affirms Homeco Living’s commitment to providing an unparalleled shopping experience for their customers. With a focus on customer satisfaction and consistent product quality, Homeco Living has become the destination of choice for those who desire a unique, sophisticated and sustainable lifestyle in decorating and furnishing their homes.

“I think Homeco Living’s (LIVE) prospects are very good considering its modest PE (Price to Earning) of 9.8x which is 30% cheaper than its peers with ROE (Return on Equity) which is 20% higher than its peers: 17.6% with a net cash B/S of 0.94x-2.62x. Therefore, assuming a PE (Price to Earning) of 16x, the fair value is Rp260/share, implying a 76% increase from the IPO price,” said Rudy Salim, Indonesian Entrepreneur and National Investor. (*)