PT Avia Avian Tbk ("the Company" or "Avian Brands") is a market leader in the paint and decorative coatings industry in Indonesia and has been listed on the IDX on December 8, 2021. The Company's initial public offering ("IPO") was successfully priced at the top end of its range, at Rp930 per share, and received strong support from both domestic and foreign institutional investors as well as retail investors. This initial public offering attracted various reputable investors including global long-term investors, sovereign wealth funds, and domestic institutions, and was oversubscribed multiple times. With an offering size of Rp10.951 billion (US$771 million), this listing is the largest IPO ever in Asia for the paint sector, the second largest IPO for the paint sector globally, and the third largest IPO in Indonesia since 2008.
Wijono Tanoko, President Director Stated:
"This initial public offering is an important milestone for Avian Brands' employees, customers, suppliers, and all partners. The tremendous support received for this IPO is a realization of the vision of Mr. Soetikno Tanoko, who founded the Company in 1978.”
Ruslan Tanoko, Vice President Director Noted:
"Under the leadership of Mr. Wijono Tanoko and Mr. Hermanto Tanoko, Avian Brands has solidified its position and excellence in the decorative paint industry in Indonesia. The management team led by myself, Robert Tanoko, and Kurnia Hadi, supported by our partner GIC, has accelerated Avian Brands' transformation into an agile, customer-focused company, capable of offering innovative, quality products to the Indonesian people. We have built Avian Brands into the number 1 leader in the decorative paint sector in Indonesia2 . We would like to extend our sincere thanks to the 7,210 employees who constantly innovate to serve the 52,625 building material stores that have supported us for many years. We always hope that the special relationship formed and this partnership can continue in the future."
Robert Tanoko, Director, added:
"The stock listing is the natural next step in Avian Brands' journey. With this IPO, we have greater financial and operational flexibility to continuously innovate and enhance our ESG practices. We are very pleased that our new shareholders have decided to join us in our next growth phase and we are committed to generating the best added value for all stakeholders."
Hermanto Tanoko, President Commissioner, concluded:
"The size and timing of our IPO were made possible by the hard work of the OJK and IDX teams, as well as all our partners who continue to support us. On behalf of the company, I appreciate the deep involvement and strategic direction from our former commissioner, Mr. Choo Koon Po, who has collaborated with our management to achieve the status of the number 1 decorative paint company and build leading operational and financial performance in the paint industry. Our number 1 position in the decorative paint industry is a testament to the ability of Indonesian local companies to grow domestically to become market leaders and provide unparalleled quality products to meet the growing aspirations of the Indonesian people."
As part of the IPO, the Company and several selling shareholders offered a total of 11,775,355,600 shares, comprising approximately 52.7% new shares and approximately 47.3% existing shares offered by selling shareholders. The gross proceeds from the new share offering amounted to Rp5.766 billion (US$400 million). Post-IPO, the Tanoko Family will remain the majority shareholder of the Company with 74.7% ownership.
The net proceeds received by the Company through this IPO will be used to further enhance the Company's profitability growth and accelerate the Company's business expansion in Indonesia, as well as for the repayment of some of the Company's debts. Avian Brands is committed to developing its exceptional in-house distribution capabilities and expanding its footprint across Indonesia, including tier 1 to tier 4 cities, to ensure the Company's products can penetrate all domestic markets and are affordable for Indonesian consumers. The Company also intends to continue investing in innovative products to expand its broad portfolio of architectural solutions with strong brand awareness, which include Sunguard All-in-One, Supersilk Anti-Stain, Avitex, No Drop, and Avian. Furthermore, to continue supporting the growth prospects of its business lines. Avian Brands plans to commence the construction of its new flagship manufacturing facility in Cirebon, with operations targeted to begin in 2025.
Morgan Stanley Asia (Singapore) Pte., UBS AG Singapore Branch, and Credit Suisse (Singapore) Limited ("CS") acted as Joint Global Coordinators, DBS Bank Ltd. acted as Junior Bookrunner, and PT Mandiri Sekuritas acted as the domestic Lead Underwriter. Other supporting consultants included White & Case Pte. Ltd. as New York and US Counsel to the Company and the selling shareholders, Witara Cakra Advocates as Indonesian Counsel to the Company and the selling shareholders, Clifford Chance Pte. Ltd. as New York and US Counsel to the Joint Bookrunners, Assegaf Hamzah & Partners as Indonesian Counsel to the Joint Bookrunners, and KAP Purwantono, Sungkoro & Surja (a member of Ernst & Young Global Limited) as Public Accountants.
