Saratoga vehicle raises $151m in IPO, will invest with institutional fund

The vehicle includes the founders' sizeable stakes in coal producer Adaro Energy and telecom company Tower Bersama Infrastructure, which listed in Jakarta in 2008 and 2010 respectively. These were also successful deals for Saratoga Asia II.

More recent investments include Mitra Pinasthika Mustika (MPM), a motorcycle distributor that became a portfolio company last year and went public at the end of May, and unlisted Medco Power.

SIS will get exposure to Saratoga's private equity deal flow, which means there can be an element of retail investor participation. However, the public float is small and the primary objectives for listing SIS are understood to be deleveraging the entity and raising capital to support existing portfolio companies, as well as meeting the GP obligation to Fund III.

SIS sold 271 million new shares, or 10% of its enlarged share capital, at IDR5,500 apiece. The initial target range was IDR6,100-7,800 - which would have raised up to $219 million - but the offering was re-launched at a lower level in response to investor demand.

Last year, SIS recorded a profit of $197.6 million, up 151.4% year-on-year, and its total assets were worth $1.34 billion at the end of December.

Saratoga Capital makes growth-oriented investments in the natural resources, consumer and infrastructure sectors. Fund III is expected to make 10-12 investments with ticket sizes ranging from $20-50 million.

Medco Power was the first investment from the new fund after Saratoga secured a 51% stake in the energy division of Medco Energi Internasional, Indonesia's largest publicly listed oil producer. Co-investors in the deal, worth a total of $112 million, included International Finance Corporation (IFC).

The acquisition of a minority stake in MPM came last autumn as Saratoga teamed up with Affinity Equity Partners to commit about $100 million in capital. MPM is the exclusive franchisee for Honda motorcycles in east Java and also provides motorcycle components and peripherals, and auto financing for car and motorcycle purchases.

The company, which is looking to scale up its car rental business after acquiring auto financing and car rental assets from Austindo Nusantara Jaya last year, raised $150 million through its IPO, also in Jakarta. The offering was entirely comprised of new shares.

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• Topics
• Southeast Asia
• GPs
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• IPO
• Saratoga Capital Group
• Indonesia
• Southeast Asia
• GPs