Tays Bakers’ IPO to expand, tracking market demand

Tays Bakers

IO – PT Jaya Swarasa Agung Tbk. or Tays Bakers (“Tays”), the Indonesian healthful snack producer whose products have penetrated international markets, has offered its shares to the public, in an event carried out on 30 November 2021. The IPO was performed as the Company has reached its maximum production capacity after 20 years in the business, while market demand continues to rise.

Established in 1998, Tays Bakers started by producing one single wafer stick line, with the “Nitchi” brand name. Now, it has grown into a company that produces four food categories (biscuits and crackers, rolled wafers, extruded puff snacks and confectionery) branded as “Tricks”, “Tiles”, “Nitchi” and “Wasuka”. Its products are exported to regions as varied as ASEAN countries, China, Taiwan, Korea, Australia, Middle Eastern countries, and even the USA. The Company proffered a total of 240,300,000 (two hundred forty three million, three hundred) new Ordinary Registered Shares to the public at a price of IDR 360.00 (three hundred sixty Indonesian Rupiah) per share, allowing it to gain an additional IDR 86,508,000,000.00 (eighty-six billion, five hundred and eight million Indonesian Rupiah) post-IPO. This amount is equal to 21.87% of the Company’s paid-up capital.

“We will use the greater part of our IPO proceeds for Company capital expenditures: 53.69% for constructing new factories, 38.29% for purchasing and installing production machines, and the remaining 8.02% for working capital,” detailed PT Jaya Swarasa Agung Tbk CEO Alexander Anwar.

Amir Suhendro Samirin, NH Korindo Sekuritas Indonesia’s Director of Investment Banking, stated that “The Company has obtained a permit from OJK effective on 26 November 2021, performed the IPO from 30 November to 2 December 2021, and registered itself on the Indonesian Stock Exchange on 6 December 2021. In view of the enthusiasm garnered during the book building period, as well as the attractive industry the Company is in, we are confident that many market participants will be interested in the IPO,” he said.

Dimas Pratama, NH Korindo Sekuritas Indonesia Market Analyst, added, “As we look at the condition of the snacks industry nowadays, Tays Bakers has a good prospect for expanding its market, especially for its Tricks potato crisp products. With the support of proper investment for other products, Bakers can grow even larger,” he said.

Alexander Anwar went on to explain that Tays Bakers’ new factory and machinery will allow it to innovate in the production of healthful snacks that are good for people to consume, including those with special nutritional needs such as vegetarian, gluten-free, or low-sugar products meant for people with a higher health awareness. “We have confirmed that the development of healthy snack markets is rapid, both in Indonesia and elsewhere. Naturally, these innovative new snacks must still taste good, in line with our motto ‘Tays Bakers Tastes Better’,” Alexander said. “Tays Bakers is an attractive investment opportunity with a huge growth potential. With our 20 years of experience, we have proven ourselves by surviving various crises, including the national economic crises of 1998, 2004, 2008, and the current pandemic.”