Nanotech Indonesia Global Prepares to Take the Floor on the Indonesian Stock Exchange

Nanotechnology company PT Nanotech Indonesia Global Tbk (IDX: NANO) is preparing to hold an IPO by releasing 1,28 billion shares or equivalent to 29,99% of the paid-up capital after the initial public offering. Nanotech is claimed to be the first nanotechnology company in Indonesia to be listed on the Indonesian stock exchange.

In the Nanotech e-IPO prospectus, the company set the offering price in the range of Rp. 95 to Rp. 105 per share with the target of getting collect as much money as possible amounting to Rp134,92 billion. The initial offer is scheduled for February 8-15 and is targeted to receive an effective statement from the Financial Services Authority (OJK) in February 2022.

For information, Nanotech started as a nanotechnology research group which was founded in 2005 by Prof. Nurul Taufiqu Rochman. After years of research and development of new products based on nanotechnology, Nanotech has officially been established as an official entity in 2019.

Nanotech's mission is to answer the problems, needs and challenges of academia, investors, industry, business, and government that can only be engineered with science and technology. Citing its official website, Nanotech offers science and technology services based on R&D, materials engineering, and nanotechnology with more than 10 years of experience.

Currently, Nanotech is connected with more than 300 nanotechnology scientists, has more than 40 technology licenses, 29 brands with nano technology, as well as 100 formula banks.

Use of IPO funds

Still based on the e-IPO prospectus, Nanotech details the use of this IPO fund which consists of (1) Rp16,39 billion to purchase machinery and equipment for materials engineering technology services, (2) Rp16,7 billion to purchase machinery and equipment related to technology services. health, cosmetic and pharmaceutical.

Then, (3) Rp16,22 billion to purchase machinery and equipment related to R&D services, (4) Rp17,04 billion for machinery for implementing waste utilization technology, and (5) Rp3,61 billion for the development of IT infrastructure and supporting systems.

Contacted DailySocial.id Separately, Nanotech Chief Operating Officer Kurniawan Eko Saputro revealed that this business plan can be run in parallel in 2022 considering that Nanotech is supported by joint operations (joint operations) together as a buffer for several strategic business units.

Currently, Nanotech has five SBUs (Strategic Business Units), including the General Industry SBU, Health, Cosmetics and Pharmaceutical SBU, Aquaculture and Agribusiness, SBU Education and Training, and SBU Property and Construction. "The SBU with this scheme will be implemented in the second quarter of 2022 with the hope of supporting the overall growth acceleration," said Kurniawan.

In the health, cosmetic, and pharmaceutical industries themselves, he assesses the potential in Indonesia is still very large. Indonesia has natural wealth with 30.000 species that have been identified and 950 species of which have medicinal plant functions, namely plants, animals, and microbes that have potential as medicine and health food.

With this condition, Indonesia has the potential to become a producer of natural ingredients in the food, medicine, and cosmetic industries. Citing Statistita's research, Kurniawan said the market for natural and organic cosmetic ingredients has grown rapidly over the past few years and is estimated to reach $22 billion by 2024.

Then, the valuation of world cosmetic sales is also said to reach $145,3 billion in 2020, and is estimated to continue to grow at a CAGR of 4,99% per year during the 2020-2025 period. According to Statista 2022 research, the valuation of the world cosmetic market is projected to reach $189,3 billion in 2025.

Not to mention, the potential of the pharmaceutical industry whose growth reaches 12%-13% per year. According to the Ministry of Industry (Kemenperin), the pharmaceutical market in Indonesia is estimated to reach $10 billion in 2021.

"Indonesia has biological wealth and demographic bonuses. So, opportunities are wide open for Indonesia. Currently, SBUs that contribute the most are the general and health, cosmetic and pharmaceutical industries. Strategies to encourage revenue growth include adding value to the services provided to customers and related stakeholders," said Kurniawan.

Regarding the implementation of waste utilization technology, he added that his party is currently preparing a technology/waste treatment system to become a material that is safer for the environment. This technology will be offered to companies that have problems with processing innovation or utilizing the waste they produce during their operations. For example, the use of industrial waste refinery cooking oil and textiles.