Indonesian football club Bali United is set to become the first football club to go public in Southeast Asia, after it announced plans to raise up to Rp 350 billion ($25 million) from an IPO on the Indonesian Stock Exchange (IDX).
In an official statement, Bali Bintang Sejahtera, the firm that owns and manages the Indonesian League 1 professional football team, said it plans to issue as many as 2 billion shares, equivalent to 33.33 per cent of its paid-up capital at the IPO, with a bid price ranging between Rp155-175 per share.
The company, which has appointed Buana Capital Securities and Kresna Sekuritas as the lead underwriters for the IPO, says it plans to use around 19.1 per cent of the proceeds for capital expenditure, 20.4 per cent to strengthen the capital structure of its subsidiaries, while the remaining 60.5 per cent is to be directed towards working capital requirements.
“We are all very proud of Bali United’s growth thus far. Until now, we have always been asked to be more transparent so that everything can be closer. Hence, we have planned for Bali United to Go Public. With this Go Public, all can become the shareholders of Bali United. We can become a family. We are proud to guard, proud to be together and proud to own,” said Bali United CEO Yabes Tanuri.
Based in Gianyar, Bali, Bali Bintang Sejahtera currently holds the right to manage the Kapten I Wayan Dipta Stadium, Bali United’s home stadium, until 2023, which has a capacity of around 25,000 people.
To support Bali United, the company also owns several subsidiaries, namely: PT Bali Boga Sejahtera, which operates in the area of café / restaurant management; PT Kreasi Karya Bangsa, which operates in the field of sports agency; PT Radio Swara Bukit Bali Indah, which operates in the field of private broadcast radio; and PT IOG Indonesia Sejahtera, which operates in the field of e-sports.
According to earlier reports, another Indonesian club Persija Jakarta had said it was also looking to launch an IPO after the Indonesian presidential election in this month. However, no official announcement has been issued by the club on the plan.
Football is Indonesia’s number one sport which attracts enormous public interest. However, the country’s premier professional league is currently beset by match-fixing allegations, which has dragged a number of clubs into potential legal trouble
In 2012, Persib Bandung Bermartabat (PBB), the manager of a local football club, had declared its plans for an IPO. It had appointed Mandiri Sekuritas, Bahana Sekuritas, and Buana Capital to arrange the shares offering. It had even targeted Rp 200 billion ($15 million) from the fundraising.
The plan crashed, however, when turmoil and scandal hit the Indonesian football industry, leading FIFA to ban local clubs from participating in any international events not long after.
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