Avantgarde Capital - The Best Boutique Investment Bank in Indonesia: Financial Adviser, M&A, IPO, Private Equity , Corporate Restructuring, and Deals

PT Prodia Widyahusada Tbk

Date of Completion

7 December 2016

Deal Type

International Public Offering of PT Prodia Widyahusada Tbk (PRDA) with Reg S on the Indonesian Stock Exchange with flotation of 25% shares, raising a total IPO proceeds of IDR 1,523 billion (USD 120 million).

Company Description

PT Prodia Widyahusada Tbk is an industry pioneer and market leader in private independent clinical laboratory chain in Indonesia, with a market share of approximately 35% by revenue and the largest number of clinical laboratories in Indonesia - source: Frost & Sullivan. PT Prodia Widyahusada Tbk has a large geographical footprint with a nationwide network of over 300 outlets.

Prodia was among the very first independent clinical laboratories in Indonesia when it started its operations in 1973. It started with a vision to make the best quality clinical laboratory services available accross the country. Since then, it has continued to be a pioneer in the industry with internationally recognized quality assurance certifications, such as accreditation from CAP, a leading global authority in laboratory quality assurance, and National Glycohemoglobin Standardization Program.

Our Role and Value Added Services

AvantGarde Capital acted as the sole financial advisor to PT Prodia Widyahusada Tbk and its major shareholders in the International Public Offering with Reg S on the Indonesian Stock Exchange raising a total proceeds of IDR 1,523 billion (USD 120 million). We also advised PT Prodia Widyahusada Tbk in its pre-IPO restructuring.

Our value-add services included coordinating the whole workstreams to ensure that the transaction is well executed in timely and professional manner; assisting in the pre-IPO restructuring of the Company's structure, fixed assets and balance sheet; and arranging and advising the Company in the selection process of joint-global coordinators, joint-lead underwriters and other supporting parties in the IPO.

We played an instrumental role in building a solid investment thesis by having a close collaboration with the management to refine its strength and strategies; and assisted the Company in preparing a robust business plan with the use of IPO proceeds in order to optimize the Company's and shareholders' value. As part of our key role, we also provided the Company and the Shareholders with an objective internal valuation reference useful for pricing decisions.

As financial advisor to the Company, we also helped prepare and assist the management in providing the required information and responses for due diligence purpose and regulatory filings and in dealings with key international investors, and assisted in the negotiations of the final terms and conditions of the offering.