DIGIVESTASI - PT Multikarya Asia Pasifik Raya Tbk, a petroleum exploration and production company. (MKAP) is considering an initial public offering (IPO). MKAP will issue as many as 650 million shares, equivalent to 20% of MKAP's total issued and paid-up capital.

Citing its prospectus, MKAP management explained that it will offer 650 million shares with a nominal value of Rp 50 per share. The offering price ranges from Rp 105 to Rp 120 per share. At this price, the value of the public offering ranges from Rp 68.25 billion to Rp 78 billion.

Management explained that all proceeds from the initial public offering will be used as MKAP's working capital, including operational costs, supplier payments, and repairs to the company's heavy equipment. Currently, MKAP shares are listed as belonging to PT International Sawo Resources as much as 2.48 billion shares or equivalent to 95% of shares and Djoni Suyanto as much as 130 million shares or equivalent to 5% of shares.

Djoni Suyanto is currently also listed as MKAP commissioner and also commissioner of PT Sanurhasta Mitra Tbk (MINA). For information, MINA is one of the companies acquired by the husband of the Speaker of the House of Representatives Puan Maharani, precisely Hapsoro (Happy) Sukomohadi through Basis Investments in 2022.

MKAP was registered in 2002 under the name PT Mudking Asia. Pacific Raya. In 2004, MKAP began providing rental services for surface pumps (slurry pumps, injection pumps and transfer pumps) and heavy equipment, to meet the needs of oil and gas drilling and production facilities in Indonesia. 

In 2005, MKAP expanded its business into pump rental by becoming the owner of PT Petrodrill Manufaktur Indonesia. However, MKAP transferred ownership of Petrodrill in 2023. In 2008, MKAP through its Water Pump Mudking product achieved pioneering achievements in the field of water transfer and brine pump rental services for geothermal projects in Indonesia.

Since 2018 until now, MKAP has successfully won contracts to provide products or services for oil and gas projects for many leading companies such as PT Pertamina EP (2018), Chevron (2018), Freeport McMoran, Grasberg (2019) and P.T. Bukit Asam Tbk (2019). With the business expansion and upstream oil and gas demand in Indonesia, MKAP successfully secured new dealer rights for Pumpworks 610 (2020) and WEG brand (2023).

PT Lotus Andalan Sekuritas acts as the underwriter of MKAP's IPO. The following is an indication of the timing of MKAP's public offering. Initial Offering Period: January 18 to January 25, 2024 Effective Date: January 30, 2024 Public Offering Period: February 1-6, 2024 Issuance Date: February 6, 2024 Distribution Date Electronic distribution of shares: February 7, 2024 Listing date on the stock exchange: February 12, 2024.