Nanotechnology company PT Nanotech Indonesia Global Tbk (IDX: NANO) is gearing up for its IPO by issuing 1.28 billion shares or the equal of 29.99 per cent of funding acquired during the process. The company is said to be the first nanotechnology company to get listed on the stock exchange in Indonesia.
In its prospectus, the company puts the price at IDR95 to IDR105 per share with the target to raise IDR134.92 billion (US$9.3 billion). The initial offering is scheduled to happen on February 8-15 and is targeted to receive effective from Financial Services Authority (OJK) in February.
Nanotech began as a nanotechnology research group that was founded in 2005 by Prof. Nurul Taufiqu Rochman. After years of conducting research and development for new products based on nanotechnology, Nanotech was established as an official entity in 2019.
The company’s mission is to tackle the problems, needs, and challenges faced by academicians, investors, industry players, and the government that can only be solved through science and technology. According to a statement on its website, Nanotech offers R&D, material engineering, and nanotechnology services with more than 10 years of experience in the field.
Nanotech is connected to more than 300 nanotechnology scientists, owns more than 40 tech licenses, 29 brands with nanotechnology, and 100 formula banks.
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Use of IPO funds
Based on its prospectus, Nanotech aims to use the funds secured through the IPO to purchase machinery and tools for material engineering technology (IDR16.39 billion/US$1.1 million) as well as machine and tools related to healthcare, cosmetics, and pharmacy industries (IDR16.7 billion).
It will also use another IDR16.22 billion to purchase machinery and tool for R&D purposes, IDR17.04 billion for waste management machines, and IDR3.61 billion (US$251,000) to develop IT and support infrastructure.
Speaking to DailySocial on a separate occasion, Nanotech COO Kurniawan Eko Saputro said that the business plan is able to be executed collectively in 2022 as the company is supported by its joint operation with several strategic business units (SBUs).
Nanotech currently runs five SBUs: General Industry, Health, Cosmetics and Pharmacies, Aquaculture and Agribusiness, Education and Training as well as Property and Construction. “SBUs under this scheme will be executed in Q2 2022 with the goal to support the acceleration of growth in general,” Saputro said.
For the health, cosmetics and pharmacy industries, the COO believes that there is a great potential for growth in Indonesia as the country is blessed with natural diversity that consists of 30,000 identified animal, plants, and microbe species –with 950 species that have been known to have medicinal and food properties.
With this condition, Indonesia has the great potential to become a producer of natural ingredients for food, medicine, and cosmetics production. Citing Statistica, Saputro said that the market for natural and organic cosmetic ingredients have been growing rapidly in the past years and is estimated to reach US$22 billion in 2024.
Global cosmetics sales valuation is also said to reach US$145.3 billion in 2020, and is expected to grow with a 4.99 per cent CAGR in 2020-2025. According to Statista 2022, the global cosmetics market is projected to reach US$189.3 billion in 2025.
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There is also the potential for pharmaceutical industry growth that reaches 12-13 per cent annually. According to the Ministry of Industry (Kemenperin), the Indonesian pharmaceutical market is estimated to reach US$10 billion in 2021.
“Indonesia has natural biodiversity and demographic bonus. There is great potential for Indonesia in this. At the moment, our highest performing SBUs are the ones on general industry and health, cosmetics and pharmacy. This strategy helps to push for revenue growth by giving added value to the services that are provided to users and stakeholders,” Saputro said.
As for the waste management tech implementation, the COO added that the company is currently preparing for a system to turn waste into more environmentally friendly materials. This technology will also be offered to other companies that are struggling with their operational waste management. For example, cooking oil and textile refinements waste.
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The article was written by Corry Anestia in Bahasa Indonesia for DailySocial.
Image Credit: microgen
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