Avia Avian Announces Largest Paint IPO
After listing on the Indonesia Stock Exchange, it was reported that Indonesian paint giant Avia Avian’s IPO became the largest in Asia and the second largest in the world for a paint producer.
According to Forbes, Avia Avian’s IPO raised to 5.7 trillion rupiah, or roughly $400 million. As a result, the company’s IPO has reportedly attracted various investors, including global long-term investors, sovereign wealth funds and domestic institutions.
“This initial public offering of shares is an important milestone for Avian Brands employees, customers, suppliers, and all partners,” said Wijono Tanoko, President Director of Avia Avian, in a statement. “Great support received for this IPO is the realization of the vision of Soetikno Tanoko who founded the Company in 1978.”
Indonesian Paint Producer Avia Avian Eyes $400 Million IPO At Potential $4 Billion Valuation https://t.co/xFZDKud1LX— Forbes (@Forbes) November 15, 2021
Consulting firm Frost & Sullivan reports that Avia Avian is the largest company for waterproofing, wood and metal paint with more than 20% of the domestic market share in terms of sales last year. The firm estimates that the company will grow by another 10% in the next five years, reaching a market size of 46 trillion rupiah.
The firm’s prediction is backed by the growing middle class projected to increase from 85 million in 2020 to 165 million people in 2030, thus driving the demand for housing which can lead to higher paint usage.
Moving forward, Avia Avian plans to make its products available in more cities across the archipelago and is already working to build its third factory in West Java's port city of Cirebon. The new facility is slated to be operational by 2025.
In 2020, Avia Avian reported a record revenue of 5.7 trillion rupia, an increase of almost 2% compared to 5.6 trillion rupiah in 2019. Net profits were also reported to reach 1.49 trillion rupiah last year, up 16% from 1.28 trillion rupiah the year prior.
“Our number one position in the decorative paint industry is a testament to the ability of local Indonesian companies to be able to develop domestically to be a market leader and provide unmatched quality products to meet the growing aspirations of the Indonesian people," said Hermanto Tanoko, President Commissioner of Avia Avian.