INITIAL PUBLIC OFFERING ANALYSIS OF PT. PHAPROS TBK

• Main Author: Fajrina/ 29116383, Nadhila
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29468
• Institution: Institut Teknologi Bandung

Population growth is an inevitable socio-economic issue. Indonesia as the fourth most populous country in the world, certainly has a high need for healthcare. One of the healthcare industry sectors with the largest revenue is pharmaceutical and biotechnology and based on projection it will continue to increase in 2025. PT Phapros Tbk is one of the State-Owned Enterprises (SOE) subsidiaries in pharmaceutical industry that has a good performance and its growth far above the average growth of the national pharmaceutical industry on 2017. Since 2016, the company has planned to build the new factory in Ungaran, Jawa Tengah as the strategy to strengthen its upstream business, increase drug production capacity, and develop product diversification. Besides that, since early 2018 Phapros also plans to acquire other pharmaceutical companies and food & beverage companies. The company needs some additional capital to implement those business expansion plans especially increase the production capacity to produce both of drugs by establishing the new factory to support the JKN program. <br /> <br /> Therefore, to get the additional capital Phapros was planning to conduct an Initial Public Offering (IPO) as one of the alternative solutions. Phapros plans to release 48% portfolio shares (saham portepel) to the public and will conduct IPO on the first semester of 2019 to get additional funds of Rp500 billion from this corporate action. <br /> <br /> This study aims to determine the intrinsic value of PT Phapros and possible IPO price ranges for investors. In this study, the determination of intrinsic value uses absolute valuation with the Discounted Cash Flow method. The analysis used in this valuation is top down analysis. Relative valuation with the P/E ratio method is also used as a supporting analysis for absolute valuation. <br /> <br /> Based on the calculations, Phapros intrinsic value with 95% degree of confidence level will fall or estimated in the price range of Rp1,653 as the lowest price and Rp 3,002 as the highest price. The most likely intrinsic value will fall in Rp2,641 based on absolute valuation and supported by relative valuation <br />