The Starbucks Indonesia franchisee is listing 1 per cent of its shares in an IPO this week.
A subsidiary of retailer Mitra Adiperkasa, Map Boga will offer the shares at 1680 rupiah (US13 cents) and expects to raise 37.25 billion rupiah, according to a prospectus. The listing will give the company a market capitalisation of around $280 million.
The unusually limited offering is because of a deal Map Boga struck with US private-equity company General Atlantic in November. In the deal, Map Boga issued 725 billion rupiah in convertible, zero-coupon bonds to GA Robusta F&B Company, a Singaporean affiliate of General Atlantic
The bonds will be converted into a 19.9 per cent stake in Map Boga at the time of the IPO.
To list on the Indonesia Stock Exchange, a company must float a minimum of 7.5 per cent of its shares to the public. Map Boga can clear this hurdle because General Atlantic will be classified as a public shareholder.
“We believe this was the best time for the IPO,” says Mitra Adiperkasa head of corporate communications Fetty Kwartati.
Map Boga holds the Indonesian franchise for five brands: Cold Stone Creamery, Godiva, Krispy Kreme, Pizza Express and Starbucks. It has more than 300 shops in 20 cities.
While Mitra Adiperkasa’s department-store division has been struggling, its F&B segment has been soaring.
Map Boga last year reported revenue of 1.62 trillion rupiah, a 23 per cent increase from the previous year, and net profit of 115 billion rupiah, a 43 per cent spike.
Kwartati says Indonesia’s cafe market will continue to expand as consumer spending shifts toward treats and experiences. Map Boga plans to open up to 60 Starbucks outlets a year, and is converting a small number of existing stores to the premium Starbucks Reserve brand.
Proceeds from both the bond issuance and the IPO will be used to fund Map Boga expansion.
Established in 1980, General Atlantic’s investments include news and entertainment outlet Buzzfeed, online-based hospitality service AirBNB and social-media app Snapchat. As well as the US, the firm also has investments in Asia, including Beijing, Hong Kong, Mumbai and Singapore.
Map Boga runs 2083 retail stores and holds 150 diversified franchises, including British retailer Marks & Spencer, Japanese department store Seibu, Spanish clothing retailer Zara and Adidas subsidiary Reebok.